Walt Disney finalized a $439 million deal to acquire full control of Hulu
Walt Disney Co (NYSE:DIS) today revealed that it has finalized a $439 million deal with Comcast (CMCSA) to finalize its full acquisition of Hulu. The security also nabbed a price-target hike to $130 from $125 from Loop Capital.
DIS is 2.6% higher to trade at $118.75 at last glance, while pacing for its third-straight gain after earlier securing a fresh 52-week peak. The shares have added 34% over the last nine months, and look ready to extend their slim 6.5% year-to-date lead, thanks to a historically bullish signal now flashing.
Digging deeper, Wat Disney stock's recent peak comes amid low implied volatility (IV), pet its Schaeffer's Volatility Index (SVI) of 18%, which stands in the 1st percentile of its annual range. This has occurred one other time over the last five years, after which the stock was higher one month later with a 10.4% gain. From its current perch, a similar move would place DIS above $131 for the first time since April 2022.
An unwinding of pessimism among short-term options traders could generate additional tailwinds for DIS. This is per the security's Schaeffer's put/call open interest ratio (SOIR), which sits in the 84th percentile of annual readings, suggesting there's been an unusual appetite for bearish bets of late.
Now looks like a good time to weigh in on the shares' next moves with options, too. Walt Disney stock's Schaeffer's Volatility Scorecard (SVS) of 94 out of 100 means it tended to exceeded options traders' volatility expectations over the past year.