Warner Bros. Discovery Inc. is seeking revised, more attractive bids from potential buyers, prompting a surge in short-term options trading on the company's stock. Traders are favoring near-term positions over long-term commitments amid uncertainty over the media giant's future structure.
- Warner Bros. Discovery Inc. is soliciting revised offers from potential buyers after an initial round of bids.
- Options trading volume for Warner Bros. Discovery rose 68% over the past week.
- 72% of recent options activity is concentrated in contracts expiring by January 2026.
- Implied volatility has increased, reflecting market uncertainty around the sale process.
- Traders are favoring short-term positions over long-term investments in the company.
Warner Bros. Discovery Inc. has initiated a new round of bid solicitation from interested parties, asking for enhanced proposals following the initial wave of expressions of interest. The move signals that the company’s current ownership structure remains under pressure as potential buyers reevaluate valuation and strategic fit. Market participants are responding by increasing activity in options contracts with expiration dates within the next 60 days, indicating a shift toward tactical, rather than strategic, positioning. Trading data shows a 68% rise in call and put volume for Warner Bros. Discovery options over the past week, with 72% of the activity centered on contracts expiring in January 2026. This suggests investors are pricing in near-term volatility tied to potential deals, spin-offs, or regulatory developments—rather than long-term fundamentals. The company's stock has fluctuated within a 12% band over the past month, reflecting heightened uncertainty. The focus on short-dated options implies that traders are hedging against abrupt market moves linked to the ongoing sale process. While no specific buyer has been named, analysts note that private equity groups and media conglomerates are likely candidates. The absence of a clear timeline or final offer has constrained deeper commitment from investors, limiting sustained bullish or bearish momentum. Market impact is concentrated among hedge funds and institutional traders who typically deploy options strategies in response to corporate restructuring events. The increased options activity has widened bid-ask spreads and elevated implied volatility, making trading more expensive. This environment could persist until a definitive offer emerges or the company confirms a timeline for a decision.