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This article first appeared on GuruFocus.

A trader just rode Warner Bros. Discovery (NASDAQ:WBD) to a stunning options windfall after Netflix (NASDAQ:NFLX) emerged as the apparent leader in a bidding race for the entertainment company. Late Thursday, almost $3 million in premium was placed on call spreads that could pay off if Warner Bros. shares moved above $23.50 within two weeks, with gains capped above $27. By early Friday morning, the trader unwound the position for $4.1 million, capturing roughly $1.15 million in profit, according to Susquehanna Market Intelligence, part of Susquehanna International Group. The structure showed no indication that the calls were hedged through selling shares, making the timing look highly deliberate.

This was not the first time Warner Bros. options drew attention ahead of deal chatter. On Sept. 11, another trader spent $5.7 million on 100,000 Warner call options when the stock was trading at $13.10, securing the right to buy 10 million shares at $15 before Dec. 19. When news of the studio’s talks with Paramount Skydance surfaced later that afternoon, the contracts appeared to be sitting on a paper gain of between $4 million and $6 million, and Susquehanna noted that the trader seemed to exit the position the next day. Warner Bros.’ 102-year legacy and deep content portfolio have continued to attract intense market speculation as investors debate its future in a consolidating streaming landscape.

Investors are dissecting the recent trades because they could reflect an expectation that Warner Bros. might benefit from strategic activity tied to Netflix’s interest or from broader deal momentum in media. Warner Bros. remains a highly strategic entertainment asset, and any incremental visibility into potential consolidation could be material for price discovery. While motives behind the trades are uncertain, the precision and speed of the profit-taking are turning heads across the options market, and more traders could be positioning for continued volatility or fresh catalysts in the weeks ahead.