Spotlight on Warner Bros. Discovery: Analyzing the Surge in Options Activity

Investors with a lot of money to spend have taken a bullish stance on Warner Bros. Discovery WBD.

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with WBD, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 26 uncommon options trades for Warner Bros. Discovery.

This isn't normal.

The overall sentiment of these big-money traders is split between 73% bullish and 23%, bearish.

Out of all of the special options we uncovered, 3 are puts, for a total amount of $94,019, and 23 are calls, for a total amount of $1,406,093.

What's The Price Target?

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $7.5 and $12.5 for Warner Bros. Discovery, spanning the last three months.

Volume & Open Interest Development

In today's trading context, the average open interest for options of Warner Bros. Discovery stands at 13894.27, with a total volume reaching 221,712.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Warner Bros. Discovery, situated within the strike price corridor from $7.5 to $12.5, throughout the last 30 days.

Warner Bros. Discovery 30-Day Option Volume & Interest Snapshot

Largest Options Trades Observed:

About Warner Bros. Discovery

Warner Bros. Discovery was formed in 2022 through the combination of WarnerMedia and Discovery Communications. It operates in three global business segments: studios, networks, and direct-to-consumer. Warner Bros. Pictures is the crown jewel of the studios business, producing, distributing, and licensing movies and television shows. The networks business consists of basic cable networks, such as CNN, TNT, TBS, Discovery, HGTV, and the Food Network. Direct-to-consumer includes HBO and the firm's streaming platforms, which have now been consolidated to Max and Discovery+. Much of the DTC content is created within the firm's other two business segments. Each segment operates with a global reach, with Max available in over 60 countries.

Having examined the options trading patterns of Warner Bros. Discovery, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance

Present Market Standing of Warner Bros. Discovery

• Currently trading with a volume of 51,017,426, the WBD's price is up by 3.25%, now at $8.59.
• RSI readings suggest the stock is currently may be overbought.
• Anticipated earnings release is in 20 days.

Expert Opinions on Warner Bros. Discovery

A total of 3 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $12.833333333333334.

• In a cautious move, an analyst from Goldman Sachs downgraded its rating to Neutral, setting a price target of $8.
• In a cautious move, an analyst from Benchmark downgraded its rating to Buy, setting a price target of $20.
• An analyst from Evercore ISI Group has decided to maintain their Outperform rating on Warner Bros. Discovery, which currently sits at a price target of $10.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Warner Bros. Discovery options trades with real-time alerts from Benzinga Pro.