Don’t look now, but earnings season is just around the corner. As companies gear up to reveal their financial report cards, savvy traders are already positioning themselves for potential breakouts.

One stock that’s caught my eye with some intriguing signals is none other than the streaming giant, Netflix (NFLX).

Netflix is currently trading at 52-week highs, but here’s the thing…

It might have even more room to run.

With its earnings announcement scheduled for October 17, just seven days away, we could see a pre-earnings rally that smart traders won’t want to miss.

Let’s dive into why Netflix is looking so appetizing right now:

Pre-Earnings Momentum: Netflix is showing strong momentum as it approaches its earnings date. The stock is trading near its 52-week highs, which often signals investor confidence and positive expectations for the upcoming report.

Multi-Timeframe Squeeze: Netflix is currently exhibiting a squeeze on both the daily and 195-minute charts. This compression of volatility often precedes significant price moves. Think of it as a coiled spring, ready to unleash explosive momentum.

Stacked EMAs: The stock is displaying stacked Exponential Moving Averages (EMAs). Imagine a staircase of bullish sentiment, with each step (or EMA) supporting the one above it. This alignment suggests strong upward momentum across various time frames.

Earnings Run-Up Potential: With seven days until the earnings announcement, there’s a window of opportunity for a pre-earnings run.

The idea is to capitalize on the anticipation and excitement leading up to the report, potentially exiting before the actual announcement to avoid earnings-related volatility.

Your Action Plan:

• Watch for a breakout above the recent high of $728
• Consider entering on a break above this level with a stop loss below the recent consolidation range, which is around $700
• Target potential gains leading up to the October 17 earnings announcement.
• Plan to exit the position before the earnings release to avoid potential post-earnings volatility.

Given how expensive the stock is and the options are, it might make more sense to trade a long vertical call spread or selling an OTM vertical put spread.

Remember, when we’re talking about options trading, even a seemingly small move in the underlying stock can translate to significant percentage gains in your options contracts.

Spotting these golden opportunities isn’t a matter of chance or intuition.

It’s about leveraging cutting-edge technology and honing your skills to read the market’s pulse.

In today’s fast-paced and volatile market, having the right arsenal of tools and the expertise to wield them effectively can make all the difference.

Want to see how we spot these opportunities in real-time?

Join me in the Daily Profits Live Room, where we use cutting-edge tools like the S.A.M. AI Scanner to identify high-probability trades across multiple timeframes.

It’s like having a high-powered telescope for the stock market, helping you spot potential winners before they take off!

Click here to learn more about the S.A.M. AI Scanner, and how it can potentially elevate your trading this earnings season.