The layoffs are a part of the company's cost-cutting restructuring plan
The shares of AT&T Inc. (NYSE:T) are down 0.7% at $28.65 at last check, after several outlets reported that WarnerMedia, which is made up of Warner Bros., HBO and Turner Broadcasting, would lay off thousands of employees, or roughly 5-7% of its workforce. The layoffs are a part of the company's broader restructuring plan, which is looking to cut costs by as much as 20%.
Digging deeper, the security has been struggling to bounce back from its March 23, 10-year low of $26.08. Though shares attempted a June rally to the $33 mark, the 100-day moving average has kept a tight lid on the equity ever since the pandemic began. Now, the stock is fighting overhead pressure at the $29 level, and remains down 26.8% year-over-year.
Pessimism is prevalent in the options pits, where puts are popular. This is per the stock's 50-day put/call volume ratio that sits in the 72nd annual percentile at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This indicates puts are being picked up at a faster-than-usual clip.
Now certainly looks like the right time to take advantage of T's next move with options. The security's Schaeffer's Volatility Index (SVI) of 21% sits in the extremely low 9th percentile of its annual range. In other words, the stock sports attractively priced premiums at the moment.