Disney Streaming Survey Surprise Sparks Bullish Options Trading

One speculator sees more upside ahead for the Dow stock

Managing Editor
Aug 29, 2019 at 10:25 AM
facebook twitter linkedin

The shares of Walt Disney Co (NYSE:DIS) are trading higher today following positive results from a recent survey regarding the entertainment powerhouse's Disney+ streaming service. Specifically, the projections for the number of U.S. households that plan to subscribe to Disney+ looks to be more than double what the company previously expected, per a recent UBS survey.

Disney projected 20% to 30% of broadband households would sign up for Disney+ by 2024, while the survey indicated up to 43% of consumers intend to subscribe. In response, DIS is up 0.9% at $137.80, at last check.

DIS has charged up the charts in 2019, so far having added 26%, with recent support emerging at the 120-day moving average. The shares saw an impressive streaming-related bull gap back in April, which paved the way to the stock's July 29 record high of $147.15.

At least one options trader today is betting on even more upside for the Dow stock in the near term. Amid accelerated activity -- the 20,000 calls on the tape so far is 1.5 times what's typically seen at this point -- a 1,000-contract block of weekly 9/13 140-strike calls was bought to open for $140,000 (number of contracts * $1.40 premium paid * 100 shares per contract).

This is the most the call buyer stands to lose, should DIS settle below $140 at the close on Friday, Sept. 13. Profit, meanwhile, will accumulate on a move above breakeven at $141.40 (strike plus premium paid).


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