Analyst Note Brings In More The Walt Disney Company (DIS) Bulls

Walt Disney Co (NYSE:DIS) calls are still the options of choice for traders

by Josh Selway

Published on Jun 3, 2015 at 2:23 PM

Walt Disney Co (NYSE:DIS) has been zooming up the charts in 2015, adding over 18%, thanks in part to continued support from its 40-day moving average. Meanwhile, option traders have been scooping up long calls over puts. According to data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day call/put volume ratio comes in at 2.42 -- higher than 83% of ratings from the past year.

Things are no different today, as DIS calls are changing hands at an accelerated rate. Most popular is the June 110 call. With a number of signs pointing to buy-to-open action, traders may be betting on the shares to extend their gains above $110 before front-month options expire, at the close on Friday, June 19.

It's not a bad time to be playing DIS options, either. The equity's Schaeffer's Volatility Index (SVI) of 15% ranks in the 14th annual percentile. This means the stock's short-term contracts are relatively cheap, from a volatility standpoint. 

At last check, Walt Disney Co (NYSE:DIS) was 0.4% higher at $111.20, benefiting from a price-target increase to $125 from $122 at Bernstein. More bullish analyst attention could be coming for the shares, too, considering nine of 22 brokerage firms say they're only a "hold."


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