News Corp (NWSA) adds $1.76 to $21.84 in heavy trading of 67 million shares on reports the company is mulling a spin off of its publishing business to focus on its more profitable TV and cable units. CNBC is reporting the announcement could come as early as Thursday. Implied volatility in the options on the stock has moved up 6.5 percent to 29 on the day amid 20X the daily average volume for NWSA. 56,000 calls and 40,000 puts on NWSA so far. The top trades printed late in the session after an investor apparently sold 17,000 Jan 17.5 puts on News Corp at 50 cents per contract to buy half as many (8500) Jan 22 – 26 call spreads for $1.45. The position looks opening and to reflect expectations for additional strength in NWSA through yearend. Needham analysts are out with bullish comments following the news today, saying the split would be a positive for shareholders.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.