Key Takeaways

Netflix ( NFLX ) is slated to report first-quarter results after markets close Thursday, and options markets suggest traders are expecting a big stock price move in the following days.

Netflix options pricing on Wednesday signaled the stock is expected to move approximately 8.5% in either direction in the week after Thursday’s report, suggesting a stock-price range of between $893.47 and $1,059.09. (U.S. financial markets are closed on Friday , which means any big move in the stock won't happen until next week.)

Uncertainty is high heading into Netflix ’s report, and that uneasiness is reflected in options prices for nearly all stocks. “The market is pricing in the highest average implied moves since 1Q20,” wrote JPMorgan analysts in a note on Monday. By their calculations, the average implied earnings -day move for the stocks they cover is 8.1% this quarter, compared with a realized average of 6.5% last quarter and 5.9% over the last three years.

In the same note, JPMorgan compared the historical post-earnings moves of the 60 largest S&P 500 stocks and their implied volatility this quarter. They found Netflix was among the stocks with the most underestimated—or "cheapest"—post-earnings volatility . Over the past three years, the stock’s post-earnings move has averaged about 11%, making it and Meta Platforms ( META ) the most volatile names in JPMorgan's sample.

Netflix's "cheap" implied volatility puts it in the minority. Traders are pricing in smaller-than-average moves for only nine of the 60 largest stocks in the S&P 500, according to JPMorgan's analysis. Tech giants Nvidia ( NVDA ), Meta, Broadcom ( AVGO ) and Oracle ( ORCL ) are among those nine.

Netflix Stock Has Momentum Heading Into Earnings

Netflix stock has jumped following each of its last two earnings reports. Shares advanced nearly 10% the day after fourth-quarter earnings topped estimates in January. The company also raised its revenue forecast for 2025 and boosted its share buyback program by $15 billion. In October of last year, Netflix beat expectations for its top and bottom lines , and indicated strong demand for its ad-supported subscription tier, sending shares soaring more than 11% the next day.