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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.

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