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Apple Rumors Send Time Warner Inc (TWX) Flying

Time Warner Inc (NYSE:TWX) is trading higher today, thanks to reports Apple Inc. (NASDAQ:AAPL) expressed interest in buying the company

May 26, 2016 at 10:36 AM
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Time Warner Inc (NYSE:TWX) is on the rise today, as reports surface that Apple Inc. (NASDAQ:AAPL) expressed interest in buying the media giant at a meeting last year -- with Netflix, Inc. (NASDAQ:NFLX) also getting dragged into the fray. TWX stock was last seen trading 1.9% higher at $74.35, though the shares remain below the 320-day moving average that stifled their breakout attempt last month. Still, today's pop should be good news for TWX options traders. 

Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows more than three TWX call options were bought to open for every put during the past two weeks. This trend is continuing today, too, with calls trading at twice the expected intraday rate. 

Analysts also have high hopes for the stock. Fifteen of the 24 analysts covering TWX recommend buying it, while none deem it a "sell." Plus, the stock's average 12-month price target of $85.35 represents a nearly 15% premium to current trading levels. 

Elsewhere, it looks like many Time Warner Inc (NYSE:TWX) short sellers have been running scared. In fact, over the past two reporting periods, short interest on TWX fell by 28.5%, and now just 1.4% of the stock's float is wrapped up in these bearish bets. 

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