New York Times Stock Rises on Acquisition Buzz

Call traders are targeting NYT in response to the news

Deputy Editor
Jan 6, 2022 at 2:09 PM
facebook twitter linkedin


The shares of New York Times Co (NYSE:NYT) are up 3.8% to trade at $47.41 at last check, after reports that the company will acquire subscription-based sports news site The Athletic for roughly $550 million. According to Reuters, the deal with help expand New York Times' digital offerings, as it hones in on its subscription-first business model. 

Call traders are chiming in after the news, with call volume running at 11 times what's typically seen at this point. So far, 1,332 calls have crossed the tape, in comparison to 107 puts. The January 50 and 47 calls are the most popular by far, with new positions being opened at the latter. 

On the charts, NYT has been struggling to break past its 120-day moving average since mid-November. Still, the equity bounced off familiar support at the $45 level earlier today, and is on track to snap a three-day losing streak. Year-over-year, the equity is just under breakeven. 

NYT Jan6

Analysts are wholeheartedly bullish on New York Times stock, with all three in coverage carrying a "buy" or better rating. Plus, the 12-month consensus price target of $53.50 represents a 13.1% premium to current levels. 

It's also worth noting that short interest makes up 5.7% of the stock's available float, or over eight days' worth of pent-up buying power. This leaves plenty of space for short covering in the near future. 

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

 


 


 
Special Offers from Schaeffer's Trading Partners