Netflix shares just hit their 27th all-time high of 2018, and one Netflix bull sees even more explosive gains ahead.
Such an increase on top of year-to-date gains would easily make Netflix the best performer in the S&P 500 for 2018. The streaming giant is currently the benchmark index's top performer, having already advanced 83 percent since the beginning of the year.
"Netflix is the real deal," Tepper said. "Really the key number that drives Netflix is their subscriber base. They currently have 125 million subscribers globally. ... They also increased their average price by 14 percent and they're just absolutely killing it internationally."
Netflix has disclosed reliably solid subscriber growth in recent years. The company is expected to report 24 percent domestic growth and 59 percent growth internationally over fiscal 2018.
"They could easily double their prices today and nobody would bat an eye so they've got this perfect combination of an addictive product along with pricing power that makes them a buy even at today's level," said Tepper.
The options market is also reflecting market optimism surrounding the red-hot stock, said Stacey Gilbert, market strategist at Susquehanna.
"From an options perspective, flow continues to be bullish," Gilbert said on Thursday's "Trading Nation." "Fast forward to January of next year, what is the probability that Netflix is back to the levels that we saw Dec. 31 of 2017? Right now the options market is suggesting that's less than 10 percent."
In fact, the options market is betting on a big swing higher from here, according to Gilbert.
"What's the probability that Netflix actually doubles?" she asked. "Right now the options market is pricing in around a 35 percent probability for that, so overall bullish sentiment continues in the options."
Netflix shares hit a new all-time high Friday. The stock was on track for a weekly gain of more than 8 percent.