Saturday, April 19, 2014

Netflix : Options market understating the upside risk into earnings on Apr 21

Is the skew representing true risk associated with Netflix into the earnings. I agree in its current form , skew aligns well with broad market sentiment towards momo- stocks but what if  Netflix reports an improvement in subscriber growth or any other widely followed operating metric. 

Stock which has a history of wild movements after the release of earnings ( good & bad) , this time options market seems not worried about the upside. That indeed got me worried

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