Netflix could see a 12% move in the stock price following the earnings print on Wednesday after the market closes. Options traders find this data by reviewing the at-the-money straddle because it provides clues into the magnitude of the move. Jim Strugger, Derivatives Strategist at MKM Partners, tells TheStreet’s Jill Malandrino this implied move is just below the realized change of 13%. Strugger explains Netflix has one of the highest implied moves of any of the U.S. names. Since Netflix stock is up almost 40% year-to-date, Strugger recommends a hedging strategy to protect gains because of the volatility that follows earnings.
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