ViacomCBS is reaping the rewards of a huge weekend at the box office, which has spurred renewed confidence in an industry whose recovery is still uncertain in the wake of Covid-19.
Even though it was Universal's latest Fast and Furious film, "F9," that led the way with a $70 million opening weekend haul, plenty of options traders are betting that ViacomCBS is the way to play for gains going forward.
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WATCH HERE"It traded more than three times the average call volume today, and calls outpaced puts by more than 4.5-to-1. The most active options were all 50-strike calls, the July 2 weekly 50-strikes, the [July and August standard expiration 50-strike calls], so options traders appear to be betting that the stock has more room to run," Optimize Advisors CIO Michael Khouw said Monday on CNBC's "Fast Money."
The 50-strike calls that expire Friday were trading at about $0.94, which means that buyers are betting that ViacomCBS could rally as much as 10% by the end of this week.
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SIGN UP ViacomCBS was trading about 1% lower in Tuesday's session.
