The two stocks that could see big moves on earnings

Netflix and Bank of America are reporting earnings next week, and both stocks have Wall Street analysts buzzing on expectations that they could see big moves.

Stacey Gilbert, head of derivative strategy at Susquehanna, notes that the options market implies a move of 8 percent for Netflix on earnings — which is lower than the stock's average post-earnings move. This could consequently provide a potentially attractive opportunity for options traders to play the stock.

"I think that's pretty interesting for a stock that's performed as well as it has year to date [and ] makes it interesting heading into an actual event where the stock could move," she said Thursday on CNBC's "Trading Nation." "It makes protection attractive for anyone who wants to take a shot at [Netflix], who feel like they've missed this opportunity."

Miller Tabak's Matt Maley has his eye on Bank of America. He believes the big bank, which reports earnings next Tuesday, is interesting as it could break out of its "sideways channel" that has played out the past few months.

"[Bank of America] hasn't been able to break above those March highs, and this is important because everybody is bulled up on the banks," the equity strategist said on "Trading Nation." "We had the great stress test results, we've had big dividend increases and buyback increases are very positive. But we'll see what happens after earnings."

A handful of big banks reported earnings Friday with Citigroup, JPMorgan and Wells Fargo all falling on the results. Netflix kicks off a slew of large-cap tech earnings that begin next week.


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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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