Setup favors WBD over NFLX and SOFI for a long, catalyst-driven intraday trade. 1) Price/technicals and upside math: - Last price: 25.035. - Proposed entry: 24.8–25.2 (slight discount to last or modest chase, realistic on open volatility). - Target exit: 25.9–26.7. - Upside from entry floor: (25.9 − 24.8) / 24.8 ≈ 4.4%, satisfying the ≥4–5% objective at the low end of the target. Top of target (~26.7) would be ~7.7% from 24.8. - Stop: 23.9, which is ~3.6% below 24.8; this offers a roughly 1.2–2.1:1 reward:risk ratio depending where within the target you exit. - ATR(14) ≈ 0.77 vs price ≈ 25 implies a typical daily range of ~3.1%; with the live M&A narrative and recent 3M move of +102% and 6M of +154%, intraday extensions beyond 1× ATR are plausible. Technicals: - Price has broken to new 52-week highs (25.465) with the high set today, an important sign of strength in the context of a major news catalyst. - SMA/EMA stack is strongly bullish: price > EMA 9 (23.95) > EMA 21 (23.15) > EMA 50 (21.14); SMA-10 (23.72) > SMA-20 (23.26) > SMA-50 (21.16). This indicates a persistent uptrend with higher lows and higher highs. - MACD is in bullish momentum: macd_line 0.938 vs signal 0.931, histogram slightly positive, confirming trend strength rather than exhaustion. - RSI ≈ 69, near overbought but not extreme (>70). In catalyst-driven breakouts, RSI can remain elevated for extended periods, so this is a feature, not necessarily a bug, for a short-term momentum trade. 2) Catalyst strength and news confirmation: - Multiple news outlets confirm that Netflix has entered exclusive talks to acquire Warner Bros. Discovery’s studio and streaming assets and that WBD has surged over 100% recently on these talks. This is strong, multi-source confirmation of a transformational M&A narrative, not a single-rumor pop. - Evidence from the feed: • SeekingAlpha headline: “Warner Bros. Discovery's Buyer Is All But Certain” discusses why WBD surged 129% amid acquisition talks led by Netflix. URL: https://finnhub.io/api/news?id=e0a6cca553a3921892cc49f701f1957179f32d46ee505cf01e41b1977045dbc3 • Yahoo headline: “Warner Bros. Discovery and Netflix Enter Exclusive Deal Negotiations” details that Netflix is now in exclusive negotiations after a bidding process. URL: https://finnhub.io/api/news?id=424ace7f4ee3a63b1597688df93e4b937f4fe3d983beaeacbbd6aab12f148496 • Additional Yahoo headline: “Netflix enters exclusive talks to acquire Warner Bros Discovery studio and streaming service, Bloomberg News reporter says” reinforces that Netflix has emerged as the top bidder. URL: https://finnhub.io/api/news?id=b83b26c1f7c02802cda44bd2b70230ae10d991dfb653c1063efbd7ec841226b2 - The exclusivity of talks reduces deal-uncertainty in the near term and tends to attract both event-driven funds and momentum retail traders. For the target (WBD), that can mean rapid repricing as traders handicap the potential takeout premium or strategic value. 3) Social and positioning context: - Social ranking: WBD is rank 10 on ApeWisdom, with a massive move in ranking (from 83 to 10) and mention trend sharply up. This indicates fresh, accelerating retail attention right into this news window. - Short interest: ~79M shares short, days-to-cover ~2.17, and short volume ratio ≈ 35.5% with a falling trend from prior 5-day average. This is a meaningful but not extreme short base. The recent price strength plus deal chatter puts shorts on the back foot: they are less likely to aggressively add and more likely to cover on strength, which supports upside follow-through. - Liquidity: Average 20-day volume ~37M, yesterday ~47M; this is highly liquid, suitable for intraday entries/exits with tight spreads. 4) Why WBD over NFLX and SOFI today: - NFLX: While also a deal participant, NFLX’s chart is weak: price (~101.2) sits well below SMA/EMA cluster (SMA-10 ~106, EMA-9 ~106.5, SMA-50 ~113.6), MACD is in bearish momentum, RSI ~37.5 (downtrend/under pressure), and it just closed lower. M&A acquirers often trade choppy to down on deal concerns (leverage, dilution, integration). That makes a clean ≥4–5% intraday upside less reliable versus its own downtrend. - SOFI: The near-term catalyst is negative (dilutive $1.5B offering) with a prominent “strong sell” framing in the latest article. While oversold bounces do happen, the stock is only modestly below its moving averages (EMA-9 ~28.77 vs price ~27.08) with MACD already bullish and RSI mid-50s, suggesting it is not deeply washed out. The risk that the dilution narrative continues to weigh on price intraday is high, and the upside case is less clear than WBD’s deal momentum. - WBD is the target in a large, widely covered potential acquisition, in a clear uptrend, at fresh highs, with strong volume and social attention. For a same-day momentum trade, that combination yields the cleanest setup. 5) Intraday plan and risk management (time horizon ~2–6 hours after open): - Entry: Look to enter between 24.8 and 25.2 in the first 1–3 hours, ideally on a quick dip toward 24.8–25.0 (prior close was 24.54; yesterday’s range 24.99–25.465, so small retracements are normal). If price gaps significantly above 25.5 and never revisits the entry zone, skip the trade rather than chase beyond the plan. - Exit: Scale out between 25.9 and 26.7. Given ATR ~0.77, a move from ~25.0 to ~26.0 is about 1.3× ATR, quite achievable on news-driven momentum. If tape is very strong (high volume, tight bid-ask, M&A chatter staying positive), lean toward the upper half of the range (26.3–26.7). If momentum stalls or market risk-off hits, take profits closer to 25.9–26.1. - Stop: Hard stop at 23.9. This level is a bit more than 1× ATR below the low end of entry and roughly below prior-day low/psychological 24 area; a break there intraday would suggest the breakout is failing or news flow has turned, invalidating the thesis. - Time-based exit: Close any remaining position into the final hour of regular trading even if target isn’t fully reached, to avoid overnight deal-risk headlines or regulatory twists. 6) Confidence assessment: - Strong, multi-source deal headlines with explicit exclusive negotiations. - Price and volume confirm an existing uptrend with a 52-week high set today. - Social sentiment and trading interest are surging. - Reward:risk profile supports ≥4–5% upside from the entry floor with a disciplined stop and predictable ATR-backed volatility. Net: This supports an intraday long bias in WBD with about 6% expected upside and controlled downside, at ~80% confidence for the targeted timeframe.

High event-driven volatility from an M&A narrative with very large recent moves. Proposed entry range (24.80–25.20) does not include the live last trade (25.2414) — plan would require chasing or adjusting the entry. Liquidity and volume are strong, but M&A rumor/negotiation risk can flip quickly.