Viacom, Inc. (VIAB) Creeps Higher on Redstone Buzz

Viacom, Inc. (VIAB) is on the move, after the company and founder Sumner Redstone reportedly agreed to a settlement

by Celeste Taylor

Published on Aug 19, 2016 at 2:37 PM

The Viacom, Inc. (NASDAQ:VIAB) saga may be coming to its conclusion. VIAB and controlling shareholder Sumner Redstone have reportedly agreed to a settlement after months of warring, with CEO Philippe Dauman expected to hit the bricks. Against this backdrop, VIAB is currently up 2.4% at $43.88.

Amid a channel of higher lows and highs, VIAB has rallied roughly 45% since VIAB's post-earnings bear gap in February, when the shares plunged to a five-year low of $30.11. More recently, VIAB has been encountering resistance around the $45-$46 mark.

VIAB 081916 2

Once August options expire at the close, peak front-month open interest will sit in at the September 45 call. This abundance of calls overhead could exacerbate short-term resistance in the $45 area.

For option buyers looking to get in on the VIAB action, now is the time to make a move, with near-term options attractively priced, from a historical volatility standpoint. VIAB's Schaeffer's Volatility Index (SVI) of 33% is lower than 94% of all other readings from the past 12 months, indicating near-term option traders are pricing in relatively low volatility expectations for the entertainment giant. 

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical levels, and top economic stories straight to your inbox.


A Schaeffer's exclusive

6 Sectors for Summer

Access your FREE insider report before it's too late!


  
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


Huge New Legal Marijuana Market Has Shortage Crisis
250 million Europeans have access to medical marijuana. There's already a shortage....
Tiffany Stock Drops as Takeover Talks Dissipate
LVMH was to acquire Tiffany & Co in a billion-dollar deal
Coty Stock Glows Up with Possible Kardashian Cosmetics Line
The trendy cosmetics company is in talks with reality TV star Kim Kardashian West over a line of beauty products
The Big Bankruptcy You Should Be Afraid Of
Porter Stansberry is making a concerning prediction.