Pros Warn of Short Interest After Netflix Pop

Pros Warn of Short Interest After Netflix Pop
Pros Warn of Short Interest After Netflix Pop   

Netflix shares rallied Tuesday after the streaming video company announced a content deal with Disney, but investors shouldn't be so quick to jump in CNBC's "Fast Money" pros said.

"We're sending up a stock 13 percent on something that's going to go into effect in 2016? Give me a break," said Dennis Gartman, editor of The Gartman Letter. (Watch: Netflix Spikes on Disney Deal)

Drakon Capital's Guy Adami wasn't banking on the stock seeing gains when the market opens.

"This is a huge short interest. The valuation is through the roof. It's been a tremendous trading stock," he said. "But if you caught this one cold today, I think you're pulling the ripcord tomorrow."

The short interest is key, said EmergingMoney.com's Tim Seymour.

"There was a level at $80 where guys were probably saying, 'This is where I get real nervous and break out,'" he said. "The stock broke out, and say what you want because I don't know if these are sustainable levels, but this is a stock guys are gambling on extinction."

Trader disclosure: On Dec. 4, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Tim Seymour is long on BAC; Tim Seymour is long on INTC; Tim Seymour is long on SBUX; Dennis Gartman is long on S&P; Dennis Gartman is long on MAT-OAS; Dennis Gartman is long on AUSSIES; Dennis Gartman is long on CAMS; Dennis Gartman is short on 10-year MOTES; Dennis Gartman is short on CRUDE; Dennis Gartman is short on YOM; Keith McCullough is long on XLU; Guy Adami is long on C; Guy Adami is long on GS; Guy Adami is long on INTC; Guy Adami is long on MSFT; Guy Adami is long on NUE; Guy Adami is long on BTU; Guy Adami is long AGU.