E.W. Scripps Skyrockets 24.5%—What’s Fueling This Volatile Surge?

Summary
• E.W. Scripps (SSP) surges 24.47% intraday to $3.205, defying Q2 earnings miss and revenue decline.
• Q2 revenue falls 5.8% to $540.1M, GAAP loss of $0.59/share, but sports strategy offsets ad weakness.
• Options chain sees 100 contracts traded for December 2025 $4 call, with 84.88% implied volatility.

Today’s explosive move in E.W. Scripps defies its Q2 earnings report, which showed a 5.8% revenue drop and a $0.59/share loss. Despite the fundamentals, the stock’s 24.47% surge—driven by a mix of strategic optimism and speculative options activity—has traders scrambling to decode the catalyst. With the stock trading near its 52-week high of $4.17, the question looms: Is this a short-lived rally or a turning point?

Sports Strategy and Earnings Volatility Drive SSP's Surge
The E.W. Scripps’ 24.47% intraday jump stems from a combination of strategic optimism and market volatility. Despite Q2 revenue falling 5.8% to $540.1 million and a GAAP loss of $0.59/share, the company highlighted its sports programming as a key differentiator. CEO Adam Symson emphasized that NBA and NHL playoff coverage generated over $7 million in revenue, cushioning declines in core advertising. Additionally, the stock’s surge coincided with a broader market rally in leveraged ETFs like UPRO and SPXL, which rose 2.37% and 2.32%, respectively. However, the move appears speculative, with the options chain showing heavy activity in the December 2025 $4 call (SSP20251219C4), which has 84.88% implied volatility and a 7.85% leverage ratio. This suggests traders are betting on a short-term rebound, despite the company’s weak fundamentals.

Broadcasting Sector Mixed as Fox Outperforms
The broadcasting sector showed mixed performance, with Fox (FOXA) outpacing E.W. Scripps. Fox’s stock rose 1.94% on Q4 earnings and revenue surprises, while SSP’s 24.47% surge appears disconnected from broader sector trends. Fox’s success in navigating macroeconomic uncertainty and advertising shifts contrasts with Scripps’ reliance on sports programming to offset ad weakness. However, the leveraged ETFs (UPRO, SPXL) gained traction alongside SSP’s move, indicating a broader appetite for high-beta plays in a volatile market.

Options and ETFs Signal High Volatility—Here’s How to Play It
• RSI: 28.43 (oversold)
• MACD: -0.1177 (bearish), Signal Line: -0.0273
• Bollinger Bands: Upper $3.68, Middle $3.12, Lower $2.57
• 200-day MA: $2.42 (below current price)

SSP’s technicals suggest a short-term rebound but long-term bearish trend. The stock is trading near its 52-week high of $4.17 but remains below its 200-day moving average. The RSI at 28.43 indicates oversold conditions, while the MACD histogram (-0.09) signals bearish momentum. For traders, the key levels to watch are the 200-day MA ($2.42) and the upper Bollinger Band ($3.68).

Top Options Picks:
1. SSP20251219C4 (Call, $4 strike, Dec 2025):
• IV: 84.88% (high volatility)
• Leverage Ratio: 7.85% (moderate)
• Delta: 0.44 (moderate sensitivity)
• Theta: -0.0028 (high time decay)
• Gamma: 0.24 (high sensitivity to price movement)
• Turnover: $4,060 (modest liquidity)
• Payoff (5% upside): $0.16 per share (max(0, 3.365 - 4) = 0.165).
This contract offers high leverage and gamma, ideal for a short-term bullish bet if the stock breaks above $3.68.

2. SSP20260320C4 (Call, $4 strike, Mar 2026):
• IV: 96.11% (extreme volatility)
• Leverage Ratio: 4.41% (low)
• Delta: 0.54 (moderate sensitivity)
• Theta: -0.0023 (high time decay)
• Gamma: 0.16 (moderate sensitivity)
• Turnover: $0 (no liquidity)
• Payoff (5% upside): $0.165 per share.
Despite its high IV, this contract’s lack of liquidity makes it a speculative play for long-term bullish scenarios.

ETFs to Watch:
• UPRO (3x S&P 500): +2.37%
• SPXL (3x S&P 500): +2.32%

Aggressive bulls may consider SSP20251219C4 into a break above $3.68, while cautious investors should monitor the 200-day MA for a potential reversal.

Backtest The E. W. Scripps Stock Performance
SPK's recent performance highlights a significant intraday surge of 30%, following a sharp decline of 55% earlier. This dramatic rebound suggests a strengthening market sentiment, potentially driven by renewed investor confidence and technical indicators signaling a bullish trend.1. Technical Rebound Signals: - The 30% intraday surge in SPK price indicates a strong technical rebound after the token retested key support levels. - This bounce has attracted attention from traders, with some speculating about a potential 150% gain in the near term.2. Market Sentiment and Fundamentals: - Despite ongoing concerns about token dilution, the technical bounce has sparked renewed interest among investors. - The ecosystem growth, as indicated by the staking market cap and total value locked on SparkLend, supports the notion of a recovering market sentiment.3. Comparison with Other Stocks: - SSP Group (LON:SSPG) has received a "buy" rating from Deutsche Bank Aktiengesellschaft, suggesting optimism for the stock's future performance. - Australian stocks like Spectur SP3 (FY25 revenue growth) and Spirit Technology Solutions (FY profit surge) have also shown positive momentum, further highlighting the broader market's resilience and growth potential.In conclusion, SPK's performance following the 24% intraday surge reflects a combination of technical strength and improving market sentiment, despite existing challenges. This trend is consistent with broader market movements, where other stocks like SSP Group and Spirit Technology Solutions are also demonstrating positive growth indicators.

Bullish Momentum Unlikely to Last—Act Now
SSP’s 24.47% surge is a high-risk, high-reward trade driven by speculative options activity and a strategic pivot to sports programming. While the stock’s technicals suggest a short-term rebound, the fundamentals—including a 5.8% revenue decline and a $0.59/share loss—weigh against sustainability. Traders should prioritize the SSP20251219C4 call for a bullish bet, but watch for a breakdown below $3.12 (middle Bollinger Band). Meanwhile, the sector leader Fox (FOXA) rose 1.94%, offering a safer alternative for those wary of SSP’s volatility. Act now: If $3.68 breaks, the December $4 call offers a leveraged play; otherwise, consider hedging with the 200-day MA as a key support level.