 Welcome, traders, to another Tick Mill Earnings Season Preview with me, Patrick, one of them before we jump into today's report. As always, we want to adhere to the risk disclaimer and most pertinent to today's presentation is the fact that the views and opinions expressed by me are solely mine and not addictive or representative of those held by Tick Mill UK or Tick Mill Europe Limited. Okay, let's jump into today's report. Today, we're going to be looking at Netflix. Netflix report earnings after the close of New York trade today, and the market is looking for an earnings per share of $2.13 on revenue of $7.838 billion. I would highlight that there is an earnings whisper number amongst analysts that the EPS could come in as high as $2.31. So, obviously, Netflix has been struggling to maintain growth in an increasingly competitive market, and as customers return to offices resulting in higher than usual rates of cancellations by new and returning subscribers, this reflects the urgency for a rebound in terms of strategy. Netflix's new offering includes cheaper ad-supported entertainment to departure from its ad-free history. Netflix shares are down 63.6% in the past year, while the triple the S&Ps decline. Netflix revenue grew by at least 20% annually between 2018 and 2020 and dropped to 8.6% in this year's second quarter. Growth for the third quarter fiscal year 2022 is expected to be 4.7% slowest of any period since at least the first quarter of 2016. Netflix global paid streaming memberships are also known as global streaming paid subscribers, indicates the number of global users that have signed up and paid for a subscription to receive streaming services. Streaming memberships have long been Netflix primary source of revenue. Video streaming has become an increasingly competitive landscape in recent years. Netflix now faces threats from rivals such as Apple, Apple TV Plus, more Disney's Disney Plus and Amazon's Prime Video and even AT&T's HBO Max now. To attract new subscribers, the company is spending more on com. Subscriber growth has slowed in the last two years. Quarterly subscriber growth ranged from 20% to 26% between 2018 and 2020, decelerated to 13.6% in the first quarter of 2021 and further slowed in subsequent quarters, reaching 5.5% last quarter. And let's now expect the slowest quartering paid subscriber growth in several years as the growth rate drops to 3.8% in the third quarter. Okay, so let's take a look at some of the trading patterns around earnings releases for Netflix. Netflix shares have moved lower in the immediate aftermath of earnings, 9 out of 12 previous reports. On average, the stock moved down 5.2% on 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 for an average gain of 0.3%. On average, the stock has moved lower by 2.2% one week after earnings. From a volatility perspective, options market is pricing in potential for a 10.5% move around the earnings release. Stock has averaged a 9.7% move in recent quarters. From a sentiment perspective, there has been noticeable buying of 8,644 contracts of the $300 call, which is expiring this Friday. Options order flow sentiment in general has been bullish ablaze. Investors sentiment going into the company's earnings is a very low bar in 22% expecting an earnings B. Netflix shares price has drifted up 13.2% post its prior earnings release. Using the last 12 quarters of data, the average drift between earnings is about 4.3%. Let's pull up the charts here and see if we can identify any near-term trading opportunities in the stock. And as I'm looking at the chart here, we've got a pretty bullish, or the potential for a bullish setup here. After making the lows into the 170 handle, we've seen a decent recovery, as noted in the analysis. And as we held $2.12 cents as support now currently, whereas the close last night $2.45, we've got a nice in box trade setting up here. So I've been looking for any breakthrough range resistance at 250 level to engage on the long side. And it actually gives us an equality objective to the upside of $299. Remember that $300 call is being actively traded and that's set to expire on Friday. Equally what we have as well is remember we do have a gap, an earnings gap of about $334 level. So like I say, if we can get through this range resistance at 250, I'm constructing on the stock, I want to trade it to the upside, initially targeting 300 and then onto that gap, play into the 330s. However, if we get a disappointment today and we lose that $212 support zone, then I'd be thinking about a move back down into test the 170 handle as support to the downside. As always, trade us, plan the trade, trade the plan, and most importantly, manage your risk. Until next time, that's very much.