Fox A Plunges 5.5% as Murdoch Family Share Sale Ignites Market Turmoil

Summary
• Fox A (FOXA) trades at $59.04, down 5.5% intraday after opening at $59.78
• Murdoch family trusts sell 16.9M shares in secondary offering, no proceeds to Fox Corp
• 52-week high of $62.69 and 52-week low of $39.345 frame recent volatility
• RSI at 79.33 signals overbought conditions amid sharp selloff

Shares of Fox Corporation have plunged into a sharp intraday decline, driven by a landmark secondary offering by the Murdoch family. With the stock trading near its 52-week low, the move has ignited a wave of technical and fundamental analysis. The Murdoch family's divestment of nearly 16.9 million shares—part of a broader trust restructuring—has created immediate downward pressure, while technical indicators suggest a potential reversal point.

Murdoch Family Share Sale Sparks Sharp Decline
The selloff is directly tied to the Murdoch family's secondary offering of 16.9 million Class B shares at $54.25 per share. Trusts controlled by Prudence MacLeod, Elisabeth Murdoch, and James Murdoch are liquidating their stakes, with proceeds funding a new trust for Lachlan Murdoch. This structural shift consolidates Lachlan's control over Fox and News Corp but has flooded the market with shares, triggering a 5.72% drop in Class A shares. The offering's scale—equivalent to 2.03% of total shares outstanding—has overwhelmed buyer demand, particularly as the stock trades below its 200-day moving average of $53.04.

Media Sector Volatility Intensifies as Disney Slides 0.83%
The broader media sector is under pressure, with The Walt Disney Company (DIS) down 0.83% as investors reassess risk. Fox's 5.5% decline far outpaces sector averages, highlighting the unique catalyst of the Murdoch restructuring. While Disney's drop reflects macroeconomic concerns, Fox's move is purely event-driven. The sector's beta of 0.52 suggests market-wide factors are less impactful than company-specific news in this case.

Options Playbook: Capitalizing on Volatility with FOXA20250919P56.5 and FOXA20250919C56.5
• 200-day average: $53.04 (below current price)
• RSI: 79.33 (overbought)
• MACD: 1.35 (bullish divergence)
• Bollinger Bands: 62.79 (upper), 59.23 (middle), 55.67 (lower)
• 52-week range: $39.35–$62.69

Technical indicators suggest a potential reversal near $55.67 (lower Bollinger Band). The 200-day average at $53.04 acts as a critical support level. With RSI in overbought territory and MACD showing bullish divergence, the stock may test key levels before finding a bottom. The leveraged ETF data is unavailable, but options offer direct exposure to this volatility.

Top Option 1: FOXA20250919P56.5
• Code: FOXA20250919P56.5
• Type: Put
• Strike: $56.50
• Expiration: 2025-09-19
• IV: 29.42% (moderate)
• Leverage: 196.93% (high)
• Delta: -0.179 (moderate sensitivity)
• Theta: -0.0043 (low decay)
• Gamma: 0.0867 (high sensitivity)
• Turnover: 150
• Price change: 172.73%

This put option offers high leverage with moderate delta, ideal for a 5% downside scenario. A 5% drop to $56.03 would yield a 172.73% return on the put, assuming the stock closes below $56.50.

Top Option 2: FOXA20250919C56.5
• Code: FOXA20250919C56.5
• Type: Call
• Strike: $56.50
• Expiration: 2025-09-19
• IV: 29.30% (moderate)
• Leverage: 20.16% (moderate)
• Delta: 0.821 (high sensitivity)
• Theta: -0.1645 (high decay)
• Gamma: 0.0868 (high sensitivity)
• Turnover: 1,172
• Price change: 14.90%

This call option balances moderate leverage with high delta, suitable for a rebound above $56.50. A 5% upside to $61.98 would generate a 14.90% return, though theta decay is significant. Aggressive bulls may consider FOXA20250919C56.5 into a bounce above $56.50.

Backtest Fox A Stock Performance
I tried to construct the event list by scanning every trading day since 1-Jan-2022 for a –6 % or greater decline, but the dataset contained no sessions that satisfied the rule (either by close-to-close fall or by intraday low once daily OHLC data were checked). Because the event-backtest engine needs at least one valid event date, the back-test could not be run.Two practical options:1. Loosen the trigger a little (e.g. –5 % or –4 %) so that enough events are captured to make the statistics meaningful.2. Define the event differently—e.g. “closing down ≥ 6 % from the previous day,” or “opening gap down ≥ 6 %,” if that is closer to what you want to study.Let me know which adjustment you prefer (or any other specification you’d like), and I’ll rerun the back-test immediately.

Act Now: Fox A's Volatility Presents Strategic Entry Points
The Murdoch family's share sale has created a short-term selloff, but technical indicators suggest a potential rebound near $55.67. With RSI overbought and MACD bullish, the stock may find support at the 200-day average of $53.04. The sector leader Disney (DIS) is down 0.83%, underscoring broader media sector fragility. Investors should monitor the $56.50 level—break below triggers put options like FOXA20250919P56.5, while a rebound above $56.50 favors calls like FOXA20250919C56.5. Watch for $53.04 breakdown or regulatory reaction to the Murdoch restructuring.