Schaeffers Investment Researchยท2025-05-05 14:56Core Viewpoint - President Trump has allowed government agencies to impose a 100% levy on movies made outside the U.S., significantly increasing costs for entertainment companies, leading to a decline in shares of Netflix, Disney, and Warner Bros Discovery [1] Company Summaries - Netflix Inc (NFLX): Shares are down 2% to $1,132.96, ending an 11-day winning streak that peaked at $1,159.44 on May 2. The stock has a 95.1% year-over-year increase but is facing pressure after breaking above the $1,000 level [2] - Walt Disney Co (DIS): Shares are down 0.3% to $92.19, extending a 17.3% year-to-date deficit. The stock is on track for its third loss in four sessions and remains below $96 since a bear gap last month, which pushed it to a 52-week low of $80.10 on April 7 [3] - Warner Bros Discovery Inc (WBD): Shares are down 1% to $8.46, struggling with resistance at the $9 level. The stock has only slightly recovered from April lows and has already decreased by 20.3% in 2025 [3] Options Activity - There is significant put volume for NFLX and WBD, with NFLX's most active contract being the weekly 5/9 1,100-strike put, while WBD's is the weekly 5/9 9-strike call, indicating new positions being opened for both [4]