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
facebook X logo linkedin


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.

 

Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.


Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!