Traders Expect Massive Sell-Off In Netflix After Earnings

Netflix Inc NFLX is scheduled to report its second-quarter earnings on Tuesday.

On CNBC's "Options Action," Michael Khouw of Optimize Advisors said that Netflix traded more than 3 times its average volume on Monday. Puts outpaced calls by more than 2:1, he added.

“There were big buyers of the weekly 100 strike puts, believe it or not, and also the 150s. Those were the two busiest options,” Khouw mentioned.

Check out other stocks making moves in the premarket.

There were buyers of 49,311 of the July 22 weekly 100-puts at an average price of 11 cents per contract, Khouw said. Traders see Netflix’s stock falling at least 47% by Friday, he added.

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NFLX Price Action: Shares of Netflix rose by 0.96% to settle at $190.92 on Monday.