How to Trade $TSLA and $NFLX for Week 3 July 2022

TESLA

Tesla will report earnings on Jul 20, Wednesday -- The consensus earnings estimate for EPS is $1.80 per share on a revenue of $16.92Bn.

Technically, $TSLA is trading within a range of 625 - 790, a breakout of 790 will be a bullish signal to buy calls (or any limited risk bullish option strategy), the breakout of 625 will a bearish signal to buy puts (or initiate any bearish strategies).

On Friday 15 Jul'22 last week, there was a notable buying of 12,291 contracts of $720 Call and 13,117 contracts of $750 and 13,493 contracts of the $800 all expiring on Friday, 22 Jul'22.

Option traders are pricing in a 8% move on earnings and the stock has averaged about a 4-4.5% move in recent quarters.

NETFLIX

Netflix is set to report earnings on Tuesday, 19 Jul'22. In the most recent two quarters, $NFLX has volatile gaps from earnings: -30% in Mar'22 and -21% in Dec'21.

There was some notable buying of ~11,000 contracts of the $100 put expiring Friday 22 Jul'22 for $8.00.

Option Traders are pricing in a ~14.8% move for this quarter's earnings.

For us, we will be initiating a neutral strategy for $NFLX. Given that the stock has been beaten down substantially and can have a positive earnings surprise, OR the stock could continue heading down due to stiffer competition and macroeconomic factors -- we want to capture both ends.

Godspeed,

Mr Arete.