Netflix reports earnings this week with options pricing an 8.5% move. Short interest recently broke out of a 52-week range, now sitting at highs across all metrics. A move back into the range may suggest bullish sentiment, while continuation above resistance could reinforce bearish expectations into earnings.

Netflix (NFLX) is due to report earnings on Thursday, April 17th. The options market is currently implying a move of 8.5%.

The company recently stated it has a five-year plan to raise its market cap to $1 trillion by doubling its revenue and tripling its operating income by 2030, according to the WSJ.

Looking back over the past 52 weeks, the stock has traded off support and resistance levels in terms of Short Interest (SI) Shares.

SI Support has been around 6.3 million shares, hitting that level three times.

SI Resistance has been around 8.3 million shares, hitting that level four times.

This has created a consistent SI range of approx. two million shares between the top and bottom boundaries.

Since hitting that last low in SI (which immediately preceded a 52-week high in stock price), SI is up by over 2 million shares, sitting at/near 52-week high’s across all SI metrics currently => 8.5 mill shares, $8.3 bill notional, 2% float.

A throwback of SI into the zone may indicate a short-term bullish view (shorts covering), whereas SI continuing its trend higher after the recent breakout will indicate a bearish view (shorts pressing).

One studying this chart could clearly see how the supply/demand dynamics have shifted, with both long and short sellers (the supply side) driving the price action leading into earnings.

NFLX short interest has shifted meaningfully, reflecting broader positioning dynamics heading into a pivotal earnings report. As the stock approaches resistance and SI metrics peak, the direction of movement will provide insight into investor conviction. Watch for a decisive move either as shorts cover or continue pressing beyond resistance.

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