Sudden C-Suite Shuffle Weighs on Disney Stock

Disney CEO Bob Iger will step down, but remain as chairman

Managing Editor
Feb 26, 2020 at 11:24 AM
facebook twitter linkedin


The shares of Walt Disney Co (NYSE:DIS) are sitting out the Dow's furious rally from this week's steep drop. DIS is the worst Dow stock today, down 1.4% to trade at $126.44, after it was announced CEO Bob Iger will be stepping down. Although he will remain company chairman, Bob Chapek, prior head of Disney Parks, will succeed Iger. Cowen and Company called the timing of the decision "curious," but noted that Iger's presence will help ease the transition. 

Disney stock is headed toward its fifth straight loss, and is trading at its lowest point since a mid-April bull gap. Since a Nov. 26 record high of $153.41, the shares have shed almost 18%, with their 50-day moving average emerging as resistance in 2020. 

In the options pits, Disney stock's Schaeffer's open interest ratio (SOIR) of 0.62, which ranks in the 85th percentile of its annual range. In other words, short-term options players have rarely been more put-heavy during the last 12 months. 

It's more of the same today. In just the first hour of trading, 23,000 puts have changed hands, triple the average intraday amount and volume pacing for the 99th percentile of its annual range. Leading the charge today is March 125 put, while new positions are being opened at the weekly 2/28 126-strike put.
 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners