Trader Bets $14 Million That Netflix to Win by Losing Warner Bid

An options trader appears to be betting almost $14 million that Netflix Inc. will win should it lose out on its bid to acquire Warner Bros. Discovery Inc.

The speculator bought 55,000 May $90 call options on Wednesday, selling the same number of $105 calls to partially fund the position, data compiled by Bloomberg show. The call-spread strategy cost about $2.51 for each contract, for a total of $13.8 million, and gives the right to buy 5.5 million shares if Netflix rallies from its current level of about $83.

The new $31-a-share buyout offer from Paramount Skydance Corp. could lead ...