Netflix (NFLX) has agreed to buy some pieces — the film and streaming businesses — of Warner Bros Discovery (WBD) for $72 billion. The leading streaming giant emerged as the top bidder for Warner Bros outbidding both rivals Comcast (CMCSA) and Paramount Skydance (PSKY) after what felt like a multi-round boxing match. However, this deal is far from being done as this proposed tie-up has significant risk of actually closing as it now dips into the world of antitrust. I want to use options to create income on the emotion that has moved Netflix about 5% lower after this announcement. Netflix has agreed to pay a $5.8 billion reverse breakup fee if the deal does not gain approval. Netflix currently only has about $8.5 billion in cash. Warner Bros Discovery will have to pay a $2.8 billion breakup

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