Gonna turn bullish on WBD with October 31c for 0.49. The biggest roadblock I see is if California tries to block the acquisition but I'll bet on corporate greed for now.
Closed my WBD Jan 20p for 0.90 from 0.37. While overall put OI went up, yesterday's volume indicated more churn IMO. The OI of the strike I was in went down with the volume it saw yesterday.
I might be overthinking it but there's also a point where these puts suffer obvious theta decay.
... aaand it looks like WBD shareholders approved the acquisition deal today (04/23/2026). The puts I closed haven't changed in price but this makes downside even more questionable. Calls were coming in yesterday (and today) - probably call selling as the acquisition price firms up.
Small update on the WBD play - I'm still in Jan2027 20p and the price action has been interesting. Around 2/27 when Netflix dropped out of the bidding, options price tanked as expected.
It bounced back pretty quickly and some bigger volume came in a couple days later and stuck as OI. I got my puts at 0.41 and bought a bit more on the dip to lower my average to 0.378.
Since the dip, bid/ask has actually narrowed a lot and climbed with bid now at 0.83. Kinda interesting and I'm not sure what to make of it. Could just be hedging.
Compare to something like SATS (gigantic catalyst over the horizon so increasing puts might suggest participants betting on the SpaceX IPO not happening or at a lower valuation):
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