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.
"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."
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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.
ViacomCBS was trading about 1% lower in Tuesday's session.