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- NetFlix Earnings & Updates.
NetFlix Earnings & Updates.
Schwab also reported and beat earnings - I talked about this trade in the report the last 3 months and why it was a big theme into ALL of 2025.
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Netflix earnings were a huge beat after market sending it to new highs and as promised in the video yesterday here are some notes.
There’s a strategy I would run call post-earnings Strat (original I know) but the concept is fairly simple…
Once a stock reports earnings it will usually trade to some key level after hours/next day and based on where we open you can trade from said level.
In the case of it’s in no-mans land meaning new highs but there is a key fib level for those that use them.
You sell the high vol on the trade with spreads (in this case call spreads)
You trade the direction opposite of the level. In this case long puts on In this case there’s a zone on what we call VooDoo Fibs to watch.
So, this area, if you watch, is the place to look to sell call spreads or to buy directional puts as the IV explodes on the call side (take in the premium) and drops on the put side: buy the cheap premium.
Situations like this are quality day-trades if you can get them and regardless of what structure you use can yield gains.
I expect this to come in off this area this week esp. if Japan hikes Thursday night.
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For those new, this is something I created back in 2015 - the strategies (like this one) are still the same as then and still work.
Tomorrow this is going to have a move and given this extension area we’re at I expect it to really move into next week.
Congrats to those long and those who have been in on for the last 3 months with that new 52 week high this week.
Dan
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