NFLX's 80-day moving average could push the stock back to its annual highs
The shares of Netflix Inc (NASDAQ:NFLX) are down 3.7% at $556.33 this afternoon, extending last week's post-earnings bear gap on the charts. The media streaming stock is on track for its fifth loss in six sessions, dragging it 8.3% lower this quarter. Still, NFLX boasts a 14.4% year-to-date lead and an even better 72.7% year-over-year gain, and this latest pullback has it near a historically bullish trendline that could soon catapult it higher.
More specifically, Netflix stock just came within one standard deviation of its 80-day moving average, after trading above this trendline since November. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, six similar signals occurred during the past three years. One month after 67% of said signals, NFLX enjoyed a 10.3% gain. From its current perch, a move of similar magnitude would put the stock above the $613 mark -- back above its year-to-date highs.
Netflix stock is also outperforming the broader-market SPDR S&P 500 ETF Trust (SPY) on a year-to-date basis, with the latter up just 6.2% in 2024. Some analysts are still pessimistic on the security despite this longer-term outperformance, with 17 of 40 covering brokerages rating it a "hold" or worse.
Now looks like an good time to take advantage of NFLX's next move with options. The equity's Schaeffer's Volatility Index (SVI) of 29% sits in the low 12th percentile of its annual range. This means the stock is currently sporting attractively priced premiums.