Noteworthy Thursday Option Activity: FHN, WBD, AI

Warner Bros Discovery (WBD) and C3.ai (AI) are experiencing significantly elevated options trading volume today, with WBD's options activity representing 86.9% of its average daily stock volume and AI's at 86.3%. Notably, long-dated call options, specifically the WBD $15 strike expiring December 2025 and the AI $16.50 strike expiring September 2025, are seeing particularly high interest, indicating concentrated bullish sentiment or strategic positioning around these price levels for both equities.

Analysis

Warner Bros. Discovery (WBD) and C3.ai (AI) are experiencing a significant surge in options market activity, with today's contract volumes representing 86.9% and 86.3% of their respective average daily stock trading volumes. This elevated interest is not diffuse but is highly concentrated in specific long-dated call options. For WBD, 108,698 contracts of the December 2025 $15 strike call have traded, representing approximately 10.9 million underlying shares. Similarly, AI has seen notable volume of 14,217 contracts in the September 2025 $16.50 strike call. The focus on these specific out-of-the-money, long-term call options suggests targeted, and potentially substantial, bullish speculation or strategic positioning by institutional players betting on significant price appreciation in both equities over the next 18-24 months. This activity establishes the $15 level for WBD and the $16.50 level for AI as key price points being watched by the derivatives market.

Key Decisions for Investors

• Investors should recognize the highly concentrated call buying in WBD and AI as a strong signal of bullish market sentiment, potentially preceding a long-term re-rating or positive fundamental developments for both companies.
• The specific strike prices of $15 for WBD (expiring Dec 2025) and $16.50 for AI (expiring Sep 2025) now serve as important long-term psychological and technical levels to monitor for future price action.
• While this activity is bullish on the surface, it is prudent to consider that it could be one leg of a complex options strategy, and investors should therefore monitor for corresponding volume in put options or other strikes to confirm the directional bias.