Trade sees Disney holding recent gains
Mike Yamamoto | [email protected]
optionMONSTER's tracking systems detected the sale of 4,241 July 50 puts in 2 seconds for $3.45. The volume was about 9 times the strike's open interest at the start of the session, clearly indicating that this is a new position.
The put seller is betting that DIS will stay above the $50 strike price through expiration in mid-July 2013. The trader also faces the obligation to buy shares if they are below that level then, but at an effective price of $46.55 once the credit from the in-the-money put sale is factored in.
DIS is down 0.45 percent to $49.42 this morning. The media and theme-parks giant gapped down from the $50 level on Nov. 8 after revenues missed estimates, but the stock has recovered those losses and now faces resistance at its 50-day moving average.