OptionsHouse

Options Trading News

December 13, 2012  Thu 10:14 AM CT

DIS: SEE CHART GET CHAIN FIND STRATEGIES
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

DIS

Walt Disney sees more large call selling

September 23, 2016

Traders continue to believe that upside potential is limited in the entertainment giant, which is down 6 percent in the last three months.

DIS

Call selling continues for Walt Disney

September 12, 2016

The media and entertainment giant reported bearish quarterly results on Aug. 9 and is down 6 percent in the last month.

OptionsHouse

Premium Services

Education & Strategy

Continue to melt up? Think debit call spreads

The U.S. equities market is continuing to melt up. Even though the labor market is stagnant, the Fed keeps hinting that a short term interest rate hike is coming sometime soon.

View more education articles »