Charter Communications announced a $34.5 billion merger with Cox
Charter Communications Inc (NASDAQ:CHTR) is in focus this morning, after the cable giant announced a merger with Cox Communications in a deal valued at $34.5 billion. The agreement, which includes $21.9 billion in equity and $12.6 billion in net debt, marks one of the largest U.S. corporate mergers in the past year and could reshape the competitive landscape across broadband and cable.
Last seen up 3.3% to trade at $433.47, Charter stock is pacing for its fifth-straight win and 14th gain in the last 16 sessions, good for a fifth consecutive weekly advance. CHTR is now trading at its highest level since October 2023, with its year-over-year lead sitting at 51.5%.
Options traders are reacting to the news, with intraday options activity running at 8 times the volume typical for this point in trading. New positions are opening at the top five most active contracts, led by the May 415 put that expires at the end of today's session.
An unwinding of pessimism among short-term traders could fuel additional tailwinds. This is per the equity's Schaeffer's put/call open interest ratio (SOIR) of 2.05 that ranks in the 95th percentile of its top of annual readings.