Fox Corp (NASDAQ:FOXA) is suffering a steep morning drop of 18% to trade at $54.02. The media conglomerate is lower after news broke on purchasing streaming name Roku (ROKU) for $160 per share or $22 billion. The press release said the intention behind the purchase is to grow into a sports, news, and streaming leader. ROKU is down 2.1% at $140.79 on the news.
FOXA is on track for its lowest close since February and worst daily performance on record. The equity has shed 25% in 2026, with today's selloff breaking well below recent support at the 200-day moving average.
Short interest has been inching lower, down 5.5% in the two most recent reporting periods. This accounts for nearly 14% of the stock's available float and would take a hefty eight days for short sellers to buy back.
Options are red hot already, with 2,864 calls and 1,112 puts exchanged so far-- 48 times the average daily trading volume. Most popular looks to be the June and July 55 strike calls, where new options are being sold to open.
Bulls had been moving in ahead of the noise. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), FOXA's 10-day call/put volume ratio of 12.80 ranks in the 86th annual percentile.
Premium is affordably priced at the moment, too. This is per the stock's Schaeffer’s Volatility Index (SVI) of 28% that stands in the 27th percentile of its annual range.
