Cloudflare (NET) stock options traders are pricing in a large move ahead of the cybersecurity firm’s Q1 2026 earnings report. With the stock trading around $253.36, the closest at-the-money strike is $252.50, where the calls are priced at $14.91, while the puts are priced at $13.60, creating a straddle of $28.51. That implies a move of about 11.3%, thereby giving NET an expected post-earnings range of roughly $224.85 to $281.87.
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Interestingly, the nearby strikes show a similar setup. The $250 straddle is priced at about $27.90, while the $255 straddle is priced at $29.89. Volume is not extremely heavy across the board, but the $250 strike stands out with 231 calls traded and 336 puts traded. Open interest is more call-heavy at that strike, with 1,078 calls versus only 26 puts. This suggests that traders have more existing upside exposure there.
Overall, the options market is clearly pricing in volatility, but the direction is less obvious. The straddle shows that traders expect a meaningful earnings move either way, while some open interest around nearby calls suggests that upside interest is still present. For investors, the bar is high. A strong report could push NET toward the upper end of the implied range, but if the results or guidance disappoint, the stock could quickly move back toward the mid-$220s.
Is NET Stock a Good Buy?
Turning to Wall Street, analysts have a Hold consensus rating on NET stock based on 18 Buys, seven Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average NET price target of $231.20 per share implies 8.6% downside risk.
