DIS is trading near a historically bearish trendline on the charts
Walt Disney Co (NYSE:DIS) is moderately higher today, up 0.3% at $89.11 at last glance following yesterday's news that CEO Bob Iger is bringing back former Executives Kevin Mayer and Tom Staggs to help guide the media giant's legacy television unit.
Walt Disney stock sports a marginal 2.6% year-to-date lead, and is on pace to lock in its third-straight winning session. However, there is reason to believe the shares could struggle over the next month, as this recent pop has placed them near a historically bearish trendline.
The stock just came 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 83% of the time, averaging a 7.3% loss. A similar move would place the equity below the $83 for the first time since the Covid-19 pandemic.
A sentiment shift in the options pits could generate more headwinds for DIS. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 50-day call/put volume ratio of 2.06 sits higher than 98% of readings from the past year.
Now looks like a good time to weigh in with options. The stock's Schaeffer's Volatility Scorecard (SVS) sits at 84 out of 100, implying DIS exceeded option traders' volatility expectations during the past year.