FuboTV's Options Volume Hits Highest in Two Years After Court Blocks Fox-Disney Sports Service
$FuboTV (FUBO.US)$ is seeing the heaviest options trading volume in two years after a court granted the company's request for an injunction that temporarily blocks the rollout of rival streaming service Venu Sports offered jointly by $Disney (DIS.US)$, Warner Bros Discovery and $Fox Corp-A (FOXA.US)$.
FuboTV's options volume jumped to 182,630 as of 12:19 p.m. in New York Monday. That would be the highest since Aug. 16, 2022, when about 232,000 contracts were traded, according to Bloomberg data. The most popular was the call option giving the holders the right to buy the stock at $2 by the end of the week, as the share price climbed above that strike price, which means the contract is now in the money.
(To see FuboTV's options chain, click here.)
Volume jumped as FuboTV shares surged 33% or 50 cents to $2.03, building on its 22% advance on Friday when the company announced the injunction. The price of the call option climbed 280% to 19 cents.
Disney, Fox and $Warner Bros Discovery (WBD.US)$ "exercised near-monopolistic control over the ability for a different live-sports-only streaming service to exist and compete with them," US District Judge Margaret Garnett wrote in her ruling, according to Bloomberg.
While a spokesperson for the three companies reportedly said they will appeal, Needham analysts Laura Martin and Dan Medina estimate there's a 75% chance that the court injunction could kill Venu, according to the Wall Street Journal. Venu may miss the NFL football season that begins in early September, unless the injunction is lifted soon, the report stated.
Amid the two-day jump in share price, technical indicators tracked by moomoo are flashing warning signals. Twelve of the 15 gauges are implying that the stock could be overbought, and the trend may turn bearish.
Share your thoughts on FuboTV, Disney, Warner Bros. and Fox below. And if you have a price forecast for FuboTV, please vote below.
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Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. All company analysis information is provided by third parties and not by Moomoo Financial Inc. Any illustrations, scenarios, or specific securities referenced herein are strictly for informational purposes and is not a recommendation. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct.
Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. All company analysis information is provided by third parties and not by Moomoo Financial Inc. Any illustrations, scenarios, or specific securities referenced herein are strictly for informational purposes and is not a recommendation. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct.
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Former editor at Bloomberg, then Lazard Asset Management. Posts aren’t investment advice. Views are just mine.
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White_Shadow : has Def. potential
Clement Lemons : okk
PS Sandy : FUBO is a 4$ stock
MonkeyGee : FUBO has a good CEO. maybe someone will buy them out
warmhearted Puppy_93 : Good
read. Time will tell.
104166257 : hi
Stock_Drift : I’ve been holding many, many, many shares since spring. This news really helps my position.
103677010 : noted