$Netflix(NFLX)$ $Warner Bros. Discovery(WBD)$ $Paramount Skydance Corp(PSKY)$ ๐๐ฌ๐ฅ Netflix vs Warner Bros Discovery, M&A tension meets a volatility inflection ๐ฅ๐ฌ๐
$NFLX is pressing into a critical liquidity pocket after sliding inside a clean descending channel from the late-June record high of $134.12. Price is now sitting in the same $83 to $90 demand zone that defined the April structural low, even while Netflix is still up +7% over the last 12M. That divergence between price and fundamentals is where mean reversion setups are born.
๐ง Options Flow and Volatility
Options positioning is flashing extreme asymmetry. The 10-day call to put ratio is 4.09, sitting in the 100th percentile, with 129K calls already traded today versus just 33K puts. Skewed Volatility Index is down in the 13th percentile, which puts IV rank deep into cheap territory. That combination creates convexity, rising gamma exposure, and positive Vanna as dealers get increasingly sensitive to upside delta.
๐ This is the kind of volatility compression that often precedes violent repricing when flow or news hits the tape.
๐ฆ Institutional and M&A Catalyst
A top $WBD holder, Harris Associates, has publicly said the Paramount Skydance $PSKY bid is not superior to Netflixโs $NFLX offer and expects both sides to raise. His words were blunt:
โWe donโt think weโve seen the best bid yet. Anyone who thinks the current bid is the best bid should sell the stock.โ
That is institutional capital openly signalling that strategic value and takeover optionality are still being repriced by the market.
๐ Technical Structure
Netflix is compressing at the lower Keltner and Bollinger bands on the 4H chart with EMA 13, 21 and 55 stacked bearishly but flattening, a classic late-trend exhaustion signal. The $83 to $90 zone is heavy support built on prior volume and open interest. The first regime shift is $95. A reclaim of that level flips structure, pulls price back into the mid-channel, and opens a liquidity path toward $102 and then the $110 shelf.
๐งฉ Cross-asset positioning, dealer gamma, cheap implied volatility, and rising M&A tension are now converging in the same price zone. When those forces align, markets rarely stay quiet.
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