Options Traders, Analysts Blitz Disney Stock After Earnings

Options volume is running at eight times what's typically seen

Deputy Editor
Aug 13, 2021 at 10:07 AM
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Walt Disney Co. (NYSE:DIS) stepped into the earnings confessional yesterday evening, reporting fiscal third-quarter earnings of 80 cents per share -- well above the 55 cents forecasted by analysts. Revenue also topped estimates, boosted by stronger-than-expected growth from its Disney+ streaming service and a bounce in theme park attendance. However, uncertainty surrounding the Covid-19 Delta variant led the company to issue a warning going forward. 

The stellar earnings report has options traders speculating heavily from both sides of the tape. So far today, 100,000 calls and 29,000 puts have already exchanged hands, which is eight times what is typically seen at this point. Most popular are the expiring weekly 8/13 190- and 187.50-strike calls, with new positions being opened at both.

A a slew of bull notes also rolled in after the event. No less than six brokerages lifted their price targets, with the highest came from Goldman Sachs to $218 from $215. Meanwhile, the 12-month consensus price target of $210.90 is a 13.3% premium to current levels. 

Disney stock was last seen 3.5% higher to trade at $185.65, and earlier rose as high as $187.58 for the first time since early May. A few days ago, we noted two trendlines to pay attention to ahead of Disney's earnings report. Suffice to say, today's positive price action has DIS trading back above its year-to-date breakeven as it heads for its fourth-straight day of gains.


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