Warner Bros Discovery reported its best ever quarterly subscriber growth for Max
Entertainment conglomerate Warner Bros Discovery Inc (NASDAQ:WBD) and video game giant Take-Two Interactive Software, Inc (NASDAQ:TTWO) are seeing higher-than-usual options activity after earnings.
Warner Bros Discovery reported third-quarter results before today’s bell. While revenue missed expectations, the company reported its streaming platform Max added 7.2 million subscribers — its biggest quarterly growth since the service was launched. For perspective, Netflix (NFLX) added 5.1 million subscribers in October, while Comcast’s (CMCSA) Peacock platform saw 3 million subscriber additions during its third quarter.
WBD was 11.2% higher at $9.32 at last check. Shares rose as high as $9.80, but are pulling back below the $9.60 level that acted as a floor in early February. The equity is now contending with its 320-day moving average that it’s traded below since December 2023. Despite today’s bounce, Warner Bros Discovery stock is still down 17.6% year to date.
In the options pits, 69,000 calls and 26,000 puts have crossed the tape so far today — 5 times the intraday average volume. New positions are being bought to open at the top three most popular contracts, led by the weekly 11/8 10-strike call.
Take-Two Interactive Software reported fiscal second-quarter revenue of $1.47 billion, which beat Wall Street’s estimates, and announced its Grand Theft Auto VI game — the latest installment of the highly successful series — remains on track for release in the fall of 2025.
At last glance, TTWO was up 6.4% at $176.01, and earlier hit its highest level since February 2022 at $176.65. In the last month, the equity’s 10-day moving average has provided support higher. Over the last 12 months, Take-Two Interactive stock is up 23.4%.
Drilling down today’s options activity, the security has seen 12,000 calls and 7,880 puts traded so far, or 5 times the amount typically seen at this point. New positions are being sold at the most popular contract, the January 17, 2025 160-strike put.