Analysts at JPMorgan are bullish on Netflix (NFLX) -- two option strategists with the firm recommended a spread strategy that will profit only if NFLX continues its quest for new all-time highs during the near term.

Specifically, Amyn Bharwani and Marko Kolanovic suggested that traders simultaneously buy September 120 calls and sell September 110 puts. This trade is known as a "collar" when the investor owns the underlying shares, but it's considered a "risk reversal" when played separately from a stock investment.

Here are some highlights from this past week's earnings coverage on BloggingStocks:

• Blockbuster Inc. (BBI) Q1 net loss was in line with estimates and same-store sales declined, shares also fell.
• CA Inc. (CA) shares sold off on high volume following the Q4 earnings miss and disappointing guidance.
• Cigna Corp. (CI) reported better-than-expected Q1 earnings and higher revenue, and reaffirmed its full-year outlook.
• Cisco Systems Inc. (CSCO) beat Q3 earnings and revenue expectations in the "strongest quarter in our history."
• Dean Foods Co. (DF) lower Q1earnings beat analysts' estimates, but shares fell on heavy volume afterward.
• Denny's Corp. (DENN) bested consensus estimates and year-ago EPS by a penny, but said same-store sales fell.

Blockbuster (BBI) is not a stock any sane investor should buy. First, it's under a buck. Second, it is currently down over 20% in afternoon trading, backed by significant volume. I'm seeing a price of just under 40 cents as I write this. Not a good situation.

Yet, I'm sure there are a fair amount of professional speculators out there making bets on the business. Hey, I can't predict the future, but I just don't see how anyone can take a chance on the shares. The one-year chart is terrible. And the most recent earnings report, released yesterday after the bell, is likewise a horrible sight to behold.

Netflix Inc. (NFLX), the world's largest online movie rental service, is scheduled to discuss its fourth-quarter financial results and 2010 outlook in a conference call Wednesday, Jan. 27, at 6:00 PM (ET), hosted by CEO Reed Hastings and CFO Barry McCarthy. A live webcast of the call will be available at the company's website.

During the three months that ended in December, Netflix announced a partnership with Best Buy (BBY) and a note offering to institutional investors. Analysts surveyed by Thomson Reuters are looking for earnings of 45 cents per share on revenue of $445.6 million, up from 38 cents per share and $359.6 million in the same period of last year.

Here are some highlights from this past week's earnings coverage on BloggingStocks:

• American Express Co. (AXP) doubled its bottom line in Q4 while its provisions for losses fell.
• Blockbuster Inc. (BBI) warned of weakness in Q4 and lowered its guidance, sending shares lower.
• Coach Inc. (COH) better-than-expected Q2 earnings were accompanied by sales growth, but shares fell.
• Comerica Inc. (CMA) posted a smaller-than-expected Q4 loss, sending shares to a 52-week high.
• CSX Corp. (CSX) posted Q4 earnings that topped estimates but its revenue fell short of expectations.

On Tuesday evening, I took a different route home than usual, and drove past my local Blockbuster (BBI) store. It was hard not to notice the brand new "Store Closing" sign, and my carpool buddies and I briefly discussed the stiff competition the chain is facing from Netflix (NFLX) and smaller rival Redbox.

Well, in light of last night's updated fiscal-year outlook, I'm beginning to think I may have witnessed a real-life bad omen (feel free to email me for your own psychic reading). After Wednesday's closing bell, Blockbuster confessed that its preliminary fourth-quarter and full-year results were unexpectedly weak -- and as a result, shares of the penny stock are slipping ever closer to theoretical support at zero.

Movie Gallery (MVGR), which plunged into bankruptcy following its ill-conceived acquisition of Hollywood Video, is working on its second restructuring effort in two years, and could close 1,000 of its 2,700 locations as part of an effort to return to profitability.

To recap: this is a company with $600 million in debt in a business that is in a permanent state of decline. The Wall Street Journal reports (subscription required) that the company could be headed back into bankruptcy: "The expected closings are part of broader discussions between Movie Gallery and its lenders, said a person familiar with the matter. The discussions are in the early stages and no decisions have been made. One possibility is that Movie Gallery could file for Chapter 11 bankruptcy reorganization in coming months, said the people familiar with the situation."

Netflix, Inc. (NFLX) is trading down today. Looks like investors aren't in the mood for the stock just before the new year begins. At the time of this writing, shares of the online DVD-rental concern were off by nearly 3%.

Kind of sad, when you think about it. Netflix is up big on the year. It was a great story of capital appreciation: buy the dips, and you made out. Whenever you thought the company was about to head into a downturn, it ended up proving you wrong. When things seemed just absolutely awful, like they did back in the first quarter, Netflix was resilient in the face of financial adversity.