M&A Buzz Sends Paramount Global Stock Surging

The 200-day moving average has been acting as resistance

Managing Editor
Jul 2, 2024 at 10:51 AM
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Shares of streaming platform Paramount Global (NASDAQ:PARA) are 2.6% higher to trade at $10.41 this morning, after several companies have expressed interest in a merger. Most notably, Paramount is in talks with Warner Bros Discovery (WBD) and billionaire Barry Diller's IAC (IAC). 

PARA has been struggling both on and off Wall Street, leaving little surprise to its 29.9% 2024 deficit. The 200-day moving average has acted as long-term overhead resistance, while several bear gaps contributed to the equity's fall from its early 2021 record peak.

Analysts have been extremely pessimistic of late, with 22 of the 27 in coverage sporting a  "hold" or worse recommendation. Meanwhile, short sellers remain in control, with 11% of the stock's total available float now sold short. 

Despite this lackluster chart performance, options traders remain call-heavy. PARA's Schaeffer's put/call open interest ratio (SOIR) of 0.36 ranks in the 26th percentile of its annual range. Plus, its International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) 50-day call/put volume ratio of 4.71 stands in the 71st annual percentile.


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