Amazon, NFL Close to $1 Billion Streaming Deal

The security has shed nearly 7% in 2021

Deputy Editor
Mar 4, 2021 at 10:40 AM
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Amazon.com, Inc. (NASDAQ:AMZN) is in the news again, after it was reported that the company is close to a media rights deal with the National Football League (NFL). The deal, reportedly worth $1 billion, will give Amazon the exclusive rights to carry a number of Thursday night NFL games on its Prime Video streaming platform beginning after the 2022 season. At last check, AMZN was up 0.2% at $3,014.83. 

Digging deeper, the equity has been taking a breather since surging to its 2021 high of $3,434 on Feb. 3. In fact, yesterday's session saw Amazon stock close at its lowest level since Nov. 2, and fall well below its 200-day moving average -- a trendline of support for the better part of a year. Now, AMZN is down 6.8% in 2021. 

There's ample pessimism in the stock's options pits currently. This is per AMZN's 10-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 96% of readings from the past year. This means puts are being picked up at a much faster-than-usual pace.

For those looking to speculate on Amazon stock, options can be had at a relative bargain. The security's Schaeffer's Volatility Index (SVI) of 33% stands higher than just 18% of readings from the past year. This implies option traders are pricing in relatively low volatility expectations at the moment. 

 

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