Options Trading News

December 13, 2012  Thu 10:14 AM CT

Disney has rebounded since falling with disappointing quarterly numbers last month, and one trader apparently believes that the stock will break back above a key level by mid-2013.

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.
Share this article with your friends

Related Stories


Big trade bets on ceiling in Disney

November 24, 2015

The media and entertainment giant, which reported mixed quarterly results on Nov. 5, is estimated to come out with its next numbers on Feb. 2.



The fastest money in the market
View full report »

Premium Services

Education & Strategy

The art of trading

As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

View more education articles »