 Welcome traders to another Tick Mill earnings season preview with me, Patrick Munnerly, before we jump into today's report. As always, want to adhere to that risk disclaimer, most pertinent to today's presentation is the fact that the views and opinions expressed by me are solely mine and they are not indicative or representative of those held by Tick Mill UK or Tick Mill Europe Limited. Okay, let's jump into today's report and we are looking at Netflix. Netflix are set to announce earnings after the close of trade in New York today and the market consensus is looking for an EPS of $2.86 on a revenue number of 8.18 billion. Netflix earnings are set to show year over year growth of roughly 4%, although it would be down from growth that rates of close to 10% in the same quarter last year. This dynamic is obviously being driven by the end of the COVID high intensity work from home environment and people having to occupy themselves principally within their houses to now obviously as the restrictions have all been lifted and people are tending to look to other activities as recreational. Netflix has also stopped providing guidance on subscriber additions, a sign that its years of growth are clearly cooling. However, the company's focus has shifted more towards better monetization and there are some key trends that markets will be watching when the company reports earnings. This will be the first full quarter since the launch of the company's ad-supported plan called Basic with Ads. Over its Q4 2022 conference call, Netflix indicated that the plan was helping it to reach out to a new set of more price sensitive customers without seeing customers switch to the ad-supported plan from other subscription tiers. Netflix is also looking to boost its monetization of account sharing while the company introduced paid sharing of accounts in some Latin American countries last year. It has expanded these tests to Canada, New Zealand, Portugal and Spain in February. Markets will be looking for updates on the nature of this expansion and how it is progressing. Netflix margins could also face some pressure over the quarter due to the timing of the company's content spending and potentially due to some foreign currency impacts. Netflix rollouts of the ad-supported tier could also have a temporary impact on margins. For perspective, Netflix sees operating margins are 20% compared to 25% in the 12 month comparison. So let's look at some of the statistical trading patterns that we can expect around Netflix earnings. Netflix shares have moved lower in the immediate aftermath of earnings, 9 out of 12 previous reports. On average, the stock has moved down 4.4% in the first day of trading after the company reports earnings. Based on the previous 12 earnings releases, Netflix is more likely to trade higher one day after earnings from an average gain of 0.7%. On average, the stock has moved lower 0.8% one week after earnings. In terms of the analyst community and forecast, well, the pricing expectations are on the downside. We would be looking at a 215 level on the upside maximum price estimate 440. We've got an average of 362 and we're currently trading just around the 330 level. So there's a bit of scope to the upside in terms of the analyst community. We've got 18 that have it as a strong buy out of the 45 that cover the stock. We've got four in a buy, 20 on a hold and only three is a strong sell. So the skew is to the positive side in terms of the analyst community. Let's take a look at the options market at implied volatility and the potential moves that we could see around the earnings release. Investor sentiment going into the company's earnings has 58% expecting earnings beat. Notable options activity with specific interest in the 340 calls, the bullish calls expiring this Friday, 3038 contracts have traded there. That's the highest volume call option currently trading in the market and options order flow sentiment in general has favored calls over put. So we're going to put that as a bullish sentiment read. The average post earnings announcement move is 10.6% in recent quarters. We want to factor that in when we're looking at price and where we could see movement go through. So in terms of the technical setup, let's pull up the Netflix chart and see we have a near term trading opportunities. Bearing in mind, we have that 340 call in the market that's active. We also know there's a potential 10% price move. So trading 335. So let's say $33, $35 worth of movement around the earnings. At this stage, setup to me looks bullish. Currently on the intraday four hour timeframe, we have what I'd deem as a five wave sequence with a potential fourth wave low in place just above that, just below the $3,000 level. We know we've got that 340 call as a magnet. So we have weekly projected range resistance coming in at 351. So I'm would be bullish and looking to be long the stock through the high volume nodes at the 340 level. First stop should be a 350 test pullbacks then should remain supported at that 340 high volume node. We look for a break through weekly projected range resistance on then to test up into the midpoint of the current channel. Around 365 would be a decent move. Now if we get a real upside surprise in terms of the earnings, then I'd be looking for that move to extend up into range resistance coming in at the 370s and then on to monthly projected range resistance coming in at 385, 386. At this stage, it would take a close back through the current swing lows that we have in place here on the four hour timeframe at that three, just below the 330 level suggests a deeper pullback into weekly projected range support and the ascending trend channel support 307, 313. But for now, my perspective is we want to be long, I guess, through that 340 and let's take a look at 365 on the upside. As always, trade us, plan the trade, trade the plan and most importantly, manage your risk. Until next time, thanks very much.