Altice USA Surges 10.9% Amid Red Sea Cable Chaos: Is This the Start of a Bullish Rebound?

Summary
• Altice USA (ATUS) rockets 10.9% intraday, surging from $2.21 to $2.495 amid global internet outages.
• Red Sea undersea cable cuts disrupt connectivity for 10+ nations, spiking demand for satellite alternatives.
• Options chain shows 112.91% implied volatility on 9/19 2.5-strike call, signaling high short-term volatility.

Altice USA’s explosive 10.9% rally on 2025-09-09 reflects a perfect storm of geopolitical risk and sector-specific demand. As undersea cables in the Red Sea were severed—impacting India, Pakistan, and the UAE—investors pivoted to satellite internet providers. The stock’s 52-week high of $3.20 remains a distant target, but technical indicators and options activity suggest a volatile near-term path.

Red Sea Cable Cuts Spark Fears of Internet Fragility
The Red Sea undersea cable incident—likely caused by a commercial ship’s anchor—has exposed the vulnerability of global internet infrastructure. With 15 cables severed in the Bab el-Mandeb Strait, rerouted traffic caused latency spikes for Microsoft Azure and Gulf telecoms like Etisalat. This crisis has amplified demand for satellite internet solutions, directly benefiting Altice USA’s cable and satellite services. While no geopolitical saboteurs were confirmed, the incident has reignited debates about infrastructure resilience, pushing investors to re-evaluate long-term exposure to traditional cable providers.

Cable & Satellite Sector Volatile as Red Sea Crisis Intensifies
The Cable & Satellite sector is in turmoil as the Red Sea crisis unfolds. While Altice USA surged 10.9%, sector leader Charter Communications (CHTR) dipped 0.41%, reflecting divergent investor sentiment. Charter’s decline suggests skepticism about cable’s ability to offset satellite demand, whereas Altice’s rally underscores its hybrid infrastructure advantage. The sector’s volatility highlights a broader shift: investors are hedging against undersea cable risks by favoring companies with diversified connectivity solutions.

Options Playbook: Leveraging High Volatility in Altice USA
• RSI: 44.44 (oversold)
• MACD: -0.0286 (bearish), Signal Line: -0.0258 (bearish), Histogram: -0.0028 (diverging)
• Bollinger Bands: Upper $2.49, Middle $2.31, Lower $2.14 (current price near upper band)
• 200-day MA: $2.50 (current price slightly below)

Altice USA’s technicals paint a mixed picture: RSI suggests oversold conditions, but MACD and Bollinger Bands indicate bearish momentum. Key levels to watch include the 200-day MA at $2.50 and the upper Bollinger Band at $2.49. Short-term traders should focus on volatility-driven options strategies, as the stock’s 112.91% implied volatility on the 9/19 2.5-strike call suggests sharp price swings.

• ATUS20250919C2.5 (Call): Strike $2.50, Expiry 9/19, IV 60.75%, Leverage 30.56%, Delta 0.44, Theta -0.0083, Gamma 1.53, Turnover 130
- IV (60.75%): High volatility premium
- Leverage (30.56%): Moderate gearing
- Delta (0.44): Balanced sensitivity to price moves
- Theta (-0.0083): Aggressive time decay
- Gamma (1.53): High sensitivity to price acceleration
- Turnover (130): Strong liquidity
- This contract offers a high-risk, high-reward setup for a 5% upside scenario (target $2.62), yielding a potential $0.12/share payoff.

• ATUS20260116C2.5 (Call): Strike $2.50, Expiry 1/16/26, IV 75.85%, Leverage 5.69%, Delta 0.58, Theta -0.00197, Gamma 0.35, Turnover 4,385
- IV (75.85%): Elevated volatility premium
- Leverage (5.69%): Low gearing
- Delta (0.58): Strong directional bias
- Theta (-0.00197): Slow time decay
- Gamma (0.35): Moderate sensitivity to price acceleration
- Turnover (4,385): High liquidity
- This longer-dated option is ideal for a bullish breakout above $2.50, with a 5% upside scenario yielding $0.12/share. Its low theta makes it suitable for holding through the Red Sea crisis resolution.

Hook: Aggressive bulls should target the 9/19 2.5-strike call for a short-term play, while the 1/16/26 contract offers a safer, longer-term bet on satellite demand.

Backtest Altice USA Stock Performance
Below is your event–backtest report. It summarizes how Altice USA (ATUS.N) behaved after days when the stock’s intraday high exceeded the previous-day close by at least 11 %, across the period 1 Jan 2022 – 9 Sep 2025.(just scroll the interactive panel to view details and charts)Key observations (from the statistical table):• 35 qualifying surge days were identified. • Over the following 1–30 trading days, average cumulative returns stayed modestly negative and never reached statistical significance versus the benchmark. • Win-rates hovered around 40 – 50 %, offering no discernible positive edge.In short, buying ATUS immediately after an 11 %+ intraday pop has not provided a reliable follow-through during 2022–2025.

Act Now: Altice USA's Volatility Presents High-Reward Opportunities
Altice USA’s 10.9% surge is a direct response to the Red Sea crisis, but sustainability hinges on whether satellite demand outpaces cable recovery. Technicals suggest a test of the 200-day MA at $2.50, with RSI hinting at a potential rebound. Investors should monitor Charter Communications (CHTR, -0.41%) as a sector benchmark. For those seeking leverage, the 9/19 2.5-strike call offers a high-volatility play, while the 1/16/26 contract provides a safer, longer-term position. Act now: Buy the 9/19 2.5-strike call if Altice breaks above $2.50, or hold the 1/16/26 contract for a bullish breakout.