Paramount Global Stock Pops After Earnings, Job Cuts

Paramount Global announced mixed second-quarter results

Paramount Global (NASDAQ:PARA) stock is up 4.5% at $10.66 at last glance, after the streaming giant reported better-than-expected second-quarter earnings of 54 cents per share, though revenue missed estimates. The company also announced it was cutting 15% of its workforce in its latest round of layoffs, as it prepares for its Skydance Media merger. 

Today’s pop isn’t enough to push Paramount Global stock into the black for the week, however, with the equity on track for its fifth consecutive weekly loss. The 126-day moving average kept a tight lid on the shares through June, following a bull gap on M&A rumors. Year to date, the stock is down 29.5%. 

A short-term bounce could’ve already been in the cards, per PARA’s 14-day relative strength index (RSI) of 21.4, which sits firmly in “oversold” territory. Plus, short interest represents 9.5% of the stock’s available float, and would take over three days for shorts to cover. 

Though calls are winning out on an absolute basis over in the options pits today, with 6,426 across the tape so far, the 4,547 puts exchanged represents double the put volume typically seen at this point. Expiring today, the weekly 8/9 10.50-strike call is the most popular, followed by the September 11 call. 

 

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