Disney Stock Could Struggle Very Soon

Walt Disney is eliminating thousands of jobs this week

Deputy Editor
Apr 24, 2023 at 1:58 PM
facebook X logo linkedin


Walt Disney Co (NYSE:DIS) is in the news today after announcing a second round of job cuts will eliminate "several thousand" jobs from today until Thursday. Wells Fargo also chimed in with a bull note, raising its price target to $147 from $141. 

Walt Disney stock, like the majority of Dow members today, is flat despite the news, down 0.2% at $99.35 at last glance. There is reason to believe the shares could soon move lower, however, as DIS has happened upon a trendline with historically bearish implications. 

The stock has come within one standard deviation of its 60-day moving average for the sixth time in the past three years. According to Schaeffer's Senior Quantitative Analyst Rocky White, DIS was negative one month later 60% of the time, averaging a 5.7% loss. A similar move would place the equity below the $94 level for the first time since mid-March.  

DIS Apr24

Now looks like a good time to weigh in with options. The stock is seeing attractively priced premiums at the moment, per Walt Disney stock's Schaeffer's Volatility Index (SVI) of 33%, which sits in the low 11th percentile of its annual range. Furthermore, the security's Schaeffer's Volatility Scorecard (SVS) sits at a 97 out of 100, meaning DIS has exceeded option traders' volatility expectations during the past year.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI