Sinclair Broadcasting (SBGI) traded 35X average calls on 8/26 with buyers active in the September $32 calls over 4000X for $0.50 to $0.55. SBGI has no other notable open interest. SBGI is consolidating in a range above 2020 value and forming a broad channel from the March lows to June highs that targets a return to $34+. The longer-term view has shares set up in a monthly bull flag that measures to $50. The $2.25B company trades 26X earnings, 0.36X sales, and 2.15X FCF with a 2.65% yield. SBGI posted strong results last quarter with the ad market continuing to rebound and optimistic about trends continuing into a busy Fall for sports. Their local coverage has outperformed the National numbers in each of their 21 markets across NBA, NHL and MLB so far. SBGI made a big splash for the 21 RSNs in 2019 from Disney, a not-so-opprtune moment as sports shut down in 2020 due to the pandemic. But, as leagues recover, SBGI is now moving forward with an ambitious plan to roll out of a DTC streaming offering for the local teams. They plan to launch the Bally Sports service in early 2022 ahead of the upcoming baseball season. SBGI sees DTC as an attractive move for their IP and capturing just 5% of homes would be a significant boost to revenue. SBGI has other notable assets including an equity stake in Bally’s, their licensed spectrum, and media investments in names like ONE Media, Dielectric, and Playfly. Analysts have an average target for shares of $33 with a Street High $35. Deutsche Bank positive in July as the risk/reward has a tailwind from advertising but they keep a hold rating on shares given the expectations for subdued retrans growth in 2022. Short interest is 8.25%. Hedge fund ownership rose 7% last quarter. HG Vora a top holder with 4.75M shares while Conifer, Contrarius and Gabelli other top holders. Insiders active late in 2020 with a VPO buying $8.6M in stock at $28.72.