Market News

January 9, 2017  Mon 8:14 AM CT

Walt Disney attracted bullish option activity on Friday for the second time in three days.

OptionMonster's market scanner shows that 2,000 June 115 calls were sold for $3.10 while 2,000 June 125 calls were purchased for $0.78. Volume was below open interest in the lower contracts, indicating that the investor is taking some profits off the table and rolling a bullish position to a higher strike. This follows upside option activity in Disney last Wednesday, which was cited in a winning trade on our InsideOptions Pro subscription service.

Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)

DIS rose 1.49 percent to $108.98 on Friday and is up 16 percent in the last three months. The media and entertainment giant reported mixed quarterly numbers on Nov. 10 and is expected to announce its next earnings results after the close on Feb. 7.

Overall option volume was twice the daily average. Calls outnumbered puts by a bullish 3-to-1 ratio.

News Archives


The fastest money in the market VIEW FULL REPORT

Education & Strategy

From the AP Archives: If It's Not There...

I have talked at great length about the fact that as an individual investor, you do not have to be in the market at all times.

More education articles »