Disney reported fiscal first-quarter results that beat top- and bottom-line estimates
Walt Disney Co. (NYSE:DIS) stock is trading at $113.79 at last check, after the company’s fiscal first-quarter earnings and revenue beat expectations, but was overshadowed by concerns over its streaming business. Disney reported adjusted earnings of $1.76 per share on revenue of $24.69 billion in the quarter just ended, but saw a 1% drop in Disney+ subscribers and warned of a “modest decline” subscribers for the second quarter.
The equity's options pits are exploding after the event. Walt Disney stock has already seen more than 57,000 calls and 19,000 puts exchange hands -- 6 times the average intraday volume. New positions are opening at the most popular contract, the weekly 2/7 120-strike call.
Heading into today, DIS was already struggling year-to-date and now sits just above breakeven for 2025. Long-term, shares remain up approximately 14% year-over-year, with support from the 20-day moving average helping to limit today's decline.
It's worth noting the Walt Disney stock has a history of exceeding volatility expectations, as evidenced by its Schaeffer's Volatility Scorecard (SVS) rating of 93 out of 100. In simpler terms, now may be a good time to weigh in on DIS' next move with options.