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Technical trader plays Netflix earnings

Netflix is set to report earnings after Wednesday's bell. And one technician says that if the shares rise on the results, they will likely look quite attractive.

The stock, which closed at $479 on Tuesday, "has been in this range between $330 and $480," said Ari Wald, head of technical analysis at Oppenheimer. "Look for the close about $480. That's going to be your confirmation" that the stock is going well higher.


Still, Wald would prefer to buy the stock on a dip.

"I think the play is to ultimately get that breakout, but I'm unsure if going into this earnings, you get this breakout right now," he said. "I would like the stock better if it were to fill that gap at $460 support."

Netflix tends to be a huge mover on earnings. In January, Netflix jumped 19 percent following its earnings release; in October, the shares fell 26 percent.

This time, the options market is implying a roughly 10 percent move off of the event, according to Stacey Gilbert, head of derivative strategy at Susquehanna.

Read MoreHere's how much Netflix will move on earnings: Trader

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