Traders are betting on a comeback quarter for Netflix

After a year-long bear market, an almost 20% decline year-to-date, and sell-offs after four of its past four earnings reports, options traders are striking a decidedly bullish tone heading into Netflix's earnings on Thursday.

Call volumes doubled puts in back-to-back sessions Friday and Monday, with almost three times as many calls bought versus puts by midday Monday, according to data from ThinkOrSwim.

At the same time, one of the most popular trades was selling at-the-money puts.

At around $75, Netflix is trading about on par with where the stock was when it ended its pursuit of Warner Brothers Discovery in February. It was around this level in late 2021 that Netflix began a sharp, 80% selloff before a multi-year recovery that peaked at $134 in June last year.

Options pricing currently implies a 7.6% swing after earnings, compared to the average realized move of 7.4% the past year, according to Cboe LiveVol data.

Netflix stock has fallen after four of its last four reports, after rallying three times a row in its preceding three reports.

Media watchers have pointed to a lack of engagement as the company has yet to have a major breakout hit in the last quarter.

According to Nielsen, Netflix's share of TV vieweship touched its lowest level in over a year.