Schwab Network Options Corner: NFLX Rebound into Earnings
Apr 16, 2026
Tom White, options strategist known for volatility-driven trades, and Rick Ducat, technical analyst who reads charts and key levels. They dissect Netflix's recent rebound into earnings. Rick maps crucial price and gap levels and momentum signals. Tom walks through a short-term call diagonal trade and alternative put setup around earnings timing.
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Gap Levels And Strong Momentum Into Earnings
- Netflix has staged a sharp rebound from lows near $75 with gap-resistance zones at $87–90.50, $100, $110, and $116–123 that define upside targets and obstacles.
- Rick Ducat highlights the rapid cross above four moving averages and an unusually strong RSI near 80, signaling momentum into earnings.
RSI Staying Elevated Through The Rally
- RSI remains unusually strong and overbought heading into earnings, which often slows but here stayed elevated near 80.
- That persistent strength suggests traders are showing conviction in the recent rebound rather than a short squeeze only.
Buy A One-Week Bullish Call Diagonal
- Use a short-term bullish call diagonal to exploit volatility differences between option series ahead of earnings.
- Tom White buys the Apr 24 107 call and sells the Apr 17 114 call for about a $3 debit, risking ~$300 with break-even near $108–109.