Netflix Inc (NASDAQ:NFLX) shares are 3.3% lower to trade at $88.08 -- their lowest level since February. The security is pacing for its third-straight loss and has shed 22.4% in the last 12 months. However, a historically bullish signal now flashing could help the media giant recover some of the ground it lost in April, when a pullback knocked NFLX from highest level since December.
According to Schaeffer's Senior Quantitative Analyst Rocky White, NFLX is now within 0.75 of its 80-day moving average's 20-day average true range (ATR), after remaining above it 80% of the time in the last two weeks, and 80% of the last 42 trading sessions. This signal has occurred 21 times in the last 10 years, after which the stock was higher one month later 71% of the time with an average 5.2% win. From its current perch, this would place NFLX back above $92.
Options look attractively priced, too, per NFLX's Schaeffer's Volatility Index (SVI) of 31% that sits higher than 5% of readings from the past year. In other words, near-term option traders are now pricing in low volatility expectations.
Finally, the equity's Schaeffer's Volatility Scorecard (SVS) comes in at an elevated 72 out of 100. This suggests the shares have consistently realized higher volatility than options traders have priced in over the past 12 months.
