Netflix Inc NFLX has lagged the overall market so far this year, as the stock is down 2.28% year to date.
Market Rebellion co-founder Pete Najarian said Monday on CNBC's "Fast Money Halftime Report" that he bought Netflix because the stock has been consolidating for most of the year.
Najarian became interested in Netflix after noticing it was trading at a similar valuation to Walt Disney Co DIS. He expects the company's expansion into gaming could be a catalyst for the stock in the "not-too-distant future."
Related Link: What This Analyst Thinks About Netflix's Potential Gaming Expansion
There has been unusual call buying activity over the last week as the company heads into its quarterly earnings report, Najarian said. He bought the stock and is selling options against it while the implied volatility is high.
If the stock sells off following its earnings report, Najarian said he's prepared to buy more, assuming the stock sells off "for the right reasons."
Netflix is scheduled to release its second-quarter financial results Tuesday after the market closes.
NFLX Price Action: Netflix has traded as high as $593.28 and as low as $458.60 over a 52-week period.
At last check Monday, the stock was down 0.3% at $528.79.
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