Amazon Buzz Fuels Heavy Sinclair Broadcast Options Trading

Wall Street is wondering if SBGI's recent purchase could lead to an Amazon partnership

May 6, 2019 at 2:09 PM
facebook X logo linkedin

Sinclair Broadcast Group Inc (NASDAQ:SBGI) stock has spiked 29% higher today to trade at $58.02, after the media giant's CEO Chris Ripley said SBGI has "an interest in as broad a distribution as possible" following its purchase of some of Walt Disney's (DIS) sports assets -- including a potential live sports partnership with (AMZN). The equity is fresh off a record high of $59.39, and options traders are piling on.

At last check, 2,381 puts and 1,697 calls have changed hands on SBGI -- nearly seven times the average intraday amount, and total options volume pacing in the 96th annual percentile. It looks like put writers may be selling to open the May 50 strike, expecting the stock to hold above the half-century mark through the close on Friday, May 17.

Elsewhere on Wall Street, a number of shorts covered their bets just in time, with short interest down 28% in the two most recent reporting periods. However, there are still 3.26 millions SBGI shares sold short, representing a healthy 5.2% of the equity's available float, or 2.9 times the average daily pace of trading.

Looking closer at the charts, Sinclair Broadcast stock rallied hard off its late December lows near $25, but recently stalled near the $46 level. The shares have sliced through this short-term ceiling with today's gap, pacing for their best day since Aug. 21, 2009, when they surged 32.6%.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI