Market News

November 29, 2016  Tue 11:55 AM CT

Traders are apparently looking for Walt Disney to rally after its next earnings report.

OptionMonster's monitoring program shows that more than 17,000 February 105 calls were purchased for $0.87 to $0.97 today. This represents fresh buying, as volume was more than 7 times the open interest in the strike.

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 is up 0.43 percent to $99.40 in afternoon trading and has risen 5 percent in the last month. The media and entertainment giant reported mixed results on Nov. 10 and is expected to announce its next quarterly numbers after the close on Feb. 7, the week before today's calls expire.

Overall option volume is about average in DIS so far today, but calls outnumber puts by a bullish 5-to-1 ratio.

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