Navigating The Market

Navigating The Market

Netflix and Tesla Option Setups Signal Risk Ahead of Earnings

Michael J. Kramer's avatar
Michael J. Kramer
Oct 21, 2025
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3 Actionable Takeaways

  • Implied volatility (IV) is elevated for both Netflix and Tesla ahead of earnings, suggesting options are overpriced and likely to lose value after results.

  • Positioning is heavily bullish, meaning expectations for upside are high, which could actually limit further gains if results are merely “in line.”

  • Gamma and Delta setups point to resistance zones—Netflix faces a key level near 1250, while Tesla encounters heavy gamma resistance around 450.

Netflix and Tesla option markets show high implied volatility and strong bullish positioning ahead of earnings, indicating that traders may be overpaying for calls and puts. The data suggest limited upside potential unless results significantly exceed expectations, with both stocks more likely to drift lower post-earnings due to volatility compression and hedge unwinding.

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