There is still a lot of uncertainty regarding Rupert Murdoch’s bid to purchase Time Warner and the options market is feeling the tension.
Time Warner’s board feels that 21st Century Fox is not in a position to finance the deal.
As such, options traders are seeking a safeguard should the stock fall to levels before Murdach’s bid.
Alex Panagiotidis, managing director for equity derivatives at Sterne Agee & Leech in New York said, “There is still a lot of uncertainty about whether the deal could happen and at what price.”
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