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There’s an elephant in the room we need to talk about, and that elephant is Warner Brothers Discovery (WBD).
What are we playing for here? It starts with a b and ends with an out — buyout.
I’ve been positioning for this exact scenario, and the pieces are falling into place faster than I expected. We spotted some interesting call activity last week through the Penny Options Dashboard, and now we’re hearing Netflix (NFLX) emerge as a potential bidder, which would be massive.
This isn’t just wishful thinking — there’s real momentum building behind this story. But let’s be clear: Investors should consider this scenario as speculative rather than a confirmed event, given the lack of official confirmation — as of yet.
The Numbers That Matter
My WBD calls were already up about 44% from last week, and I’m targeting the $18 and $20 strikes instead of chasing the $16s that showed up on the scanner.
Why? Because I think we’re looking at a much bigger prize here — there’s some WBD order flow from both the News Flow Scanner and Penny Options Dashboard pasted below.
The rumor mill is putting the deal somewhere in the mid-$20s range (per share)— specifically between $20 and $23. With Netflix getting involved, I’m leaning toward the higher end of that range.
My opinion? We’re looking at $22 to $23 for this buyout with shares trading just above $19 today, and that’s just my take based on what I’m seeing.
Why Netflix Makes Strategic Sense
Here’s the thing about Netflix — it’s been lagging because it’s not currently part of the media consolidation wave we’ve been watching. While other players are making moves, Netflix has been sitting on the sidelines.
This acquisition would be strategically valuable for Netflix, giving it the content library and production capabilities it needs to stay competitive.
I’m watching for more call activity as this story develops. Remember, buyout announcements often come over weekends when markets are closed — it’s just how these deals typically unfold.
The contrarian play here is betting on consolidation while everyone else is focused on traditional metrics.
Keep your eyes on WBD, and don’t be surprised if we wake up one Monday morning to news that changes everything for this stock.
Order Flow:
This is for informational and educational purposes only. These are not official alerts issued by Lance, but rather some interesting orders picked by the team at Lance Ippolito Trading.
When you look at these plays, always take the market maker move into consideration.
You can be right on the direction but still lose money if the stock doesn’t move enough. That’s where the market maker move comes in clutch.
With puts, they’re often downside hedges in case a stock tanks, especially around earnings. The further out of the money they are, the more likely they are to be hedges.
Also be sure and check when the company’s earnings date is because many of the plays we post here are centered around earnings!
If a stock is really expensive, consider a spread to lower the cost.
And finally, always remember the golden rule when it comes to buying calls: Buy dips, sell rips — and don’t chase!
If a stock’s moved a ton already today, maybe wait for a pullback.
There is inherent risk in trading. Trade at your own risk.
Note: If no date is listed after the month, it’s the monthly expiration (third Friday).
The team at Lance Ippolito Trading
Lance doesn’t want the CCP spying on him, so you’ll never find him on TikTok. Same goes for other social media sites, which are filled with impersonators, scammers and crypto bros.
You can only find him on his personal YouTube Channel — smash that Subscribe button! https://www.youtube.com/@LanceIppolito
And in his private Telegram channel: https://t.me/+-gVwEIwGJhplMTgx
Important Note: No one from The TradingPub team or any of its associated brands will ever contact you directly on Telegram.
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. P.S. I Just Published This Week’s Top Names
I’m keeping this momentum going with the top names being flagged for explosive moves.
If all goes as planned, they could result in gains of 2x or more, oftentimes overnight because a lot of these babies move fast…
