Paramount Skydance will buy U.S. rights to UFC for $7.7 billion for seven years
TKO Group Holdings Inc (NYSE:TKO) stock is up 8.4% to trade at $177.05 at last check, after
Paramount Skydance (PARA) revealed it will buy U.S. rights to UFC for $7.7 billion for seven years, starting in 2026.
Options traders are chiming in, with 2,382 and 3,137 exchanged so far today, which is seven times the intraday average volume. The most popular contract is the September 150-strike put, followed by the August 170 put, with positions being sold to open at both.
Bulls were already firmly in control prior to today's announcement. This is per the stock's 10-day call/put volume ratio of 4.66 at the International Securities (ISE), Cboe Options (CBOE) and NASDAQ OMX PHLX (PHLX), which ranks higher than 99% of readings from the past year.
Now pacing for a third-straight gain, TKO is eyeing its best single-day percentage gain since January 2024. The security is bouncing off a familiar floor at the $30 region trade at its highest level since July, and is now just shy of a June 30, record high of $182.60. Also looking to topple overhead pressure at the 20-day moving average today, TKO rose 50% in the last 12 months.
The security looks ripe for a short squeeze, too. Though short interest dropped 8.5% in the last two reporting periods, the 5.97 million shares sold short still make up 8.9% of TKO Group stock's available float. This is equivalent to more than six days of pent-up buying power.