Viacom, Inc. (VIAB) Option Volume Explodes as Stock Stumbles

Viacom, Inc. (VIAB) hit a four-year low earlier after its earnings report failed to impress Wall Street

by Alex Eppstein

Published on Feb 9, 2016 at 11:10 AM
Updated on Jun 24, 2020 at 10:16 AM

Viacom, Inc. (NASDAQ:VIAB) is getting battered this morning, after the company's fiscal first-quarter earnings dropped 10% year-over-year and revenue missed estimates. At last check, the shares are down over 13.6% at $36.18, short-sale restricted, and fresh off a four-year low of $35.66. Meanwhile, activity has erupted in the stock's options pits.

By the numbers, 15,000 contracts have been exchanged so far, or roughly 10 times VIAB's typical intraday amount. Most active by a mile is the deep out-of-the-money March 45 call, with nearly 11,000 contracts on the tape. It's possible some of these options were sold to open -- if so, these call writers believe the stock will stay below $45 through back-month expiration, at the close on Friday, March 18.

VIAB last closed above $45 as recently as Feb. 4, when it hit an intraday peak of $46.98 after reports of an executive shake-up surfaced. However, the shares have fallen precipitously since then, down 23%. As such, delta on the call registers at a slim 0.12, meaning the options market is giving it a 12% chance of an in-the-money finish.

Earnings and technicals aside, Viacom, Inc. (NASDAQ:VIAB) also announced an extended deal with Snapchat today. Specifically, VIAB will be ale to sell advertising on behalf of the mobile message app.

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical levels, and top economic stories straight to your inbox.


A Schaeffer's 39th Anniversary Exclusive!

8 Top Stock Picks for 2020

Access your FREE insider report before it's too late!


  
 
 

Partnercenter