Warner Bros Attracts Huge Options Trades Monday

In a close examination of the options chain and using moomoo's Unusual Activity options contract features, the story became more interesting. According to CBOE data displayed by moomoo, the volume on Monday came entirely from two contracts: 18-day-to-expiration Calls and Puts straddling the current trading price of $Warner Bros Discovery (WBD.US)$. The Call contract in the top left box of the image below gives the holder the right to buy WBD at 7.5, for a current price of about 30C/share for 100 shares. The Put gives a holder the right to sell WBD at 6.5 for a current price of 7C/share for 100 shares.

Looking at a breakdown of the Call contract, it is clear there were two large spikes in trade volume on Monday and about a month ago. The first high volume day was two days after Warner Bros announced lower earnings than the street expected, sending $Warner Bros Discovery (WBD.US)$ falling 10%. The firm next declares earnings Nov. 7th, far beyond the September 27th expiry date of the contract.

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