Until recently, World Wrestling Entertainment Inc. (NYSE: WWE) had one of the strongest charts around.  WWE shares had traded in a 52-week range of $8.96-$31.98, clocking its all time high on March 20.  Since then, the stock has fallen nearly 50%.

THE NEWS

Last Thursday, the stock fell 40% following the announcement of a TV deal with NBCUniversal that fell short of investor expectations.  Analysts have also expressed concerns the company is placing far too great an emphasis on its online video stream service —a network which requires 1.5 million subscribers just to break even, and is projected to generate just $60 million in revenue.

A BOUNCE AHEAD?

Despite all this, it can be argued the market’s reaction to the NBCUniversal deal was overdone, and WWE shares could see a bounce in the near future.  At least one institutional trader seems to think so. Yesterday, we saw a buyer come in and scoop 4,336 WWE June 12.5 Calls for $0.75.  With the potential to control 433,600 shares of stock, this order represents a $325,000 bet that WWE stock will be trading above $13.25 at June expiration.