Options Traders Blast Disney After Earnings

Wells Fargo also chimed in with a bear note

Deputy Editor
May 14, 2021 at 10:46 AM
facebook X logo linkedin


Walt Disney Co. (NYSE:DIS) stepped into the earnings confessional yesterday evening, reporting fiscal second-quarter earnings of 79 cents per share -- well above the 27 cents forecasted by analysts. Revenue, however, fell short of expectations, as did the blue-chip media giant's Disney+ subscriber growth. The streaming platform added 103.6 million subscribers, below the predicted 109 million. As a result, DIS was last seen 5% lower to trade at $169.50.

Yesterday, we took a look at Disney stock's technical setup in our pre-earnings write up, showing that the equity was at risk of falling below the once supportive 120-day moving average. Not only did it succumb to that trendline, DIS is now at risk of closing below the 150-day moving average for the first time since Aug. 4. This negative earnings report and the resulting bear gap are only adding to Disney stock's 6.1% 2021 deficit.

The lackluster earnings report has options traders speculating heavily from both sides of the tape. So far today, 120,000 calls and 81,000 puts have already crossed the tape, which is five times what is typically seen at this point. Most popular are the expiring weekly 5/14 170- and 167.50-strike puts, with new positions being opened at the latter.

Lastly, not much has changed on the analyst front, though Wells Fargo did dish out a bear note in the form of a price-target cut to $209 from $219. Coming into today, 15 of 19 brokerages considered the equity a "buy" or better, and the 12-month consensus price target of $209.08 is a hefty 23.6% premium to current prices.

 

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