Market Overview

Dan Nathan's Disney Options Trade

Share:
Related DIS
The Obamas Sign Netflix Production Deal
Moving Day: The Stocks Leaving Tech, Discretionary ETFs For The New Communication Services Sector
Goldman Sachs: Hedge funds betting against Nvidia, Intel (Seeking Alpha)

Dan Nathan spoke on CNBC's "Options Action" about an options strategy in Walt Disney Co (NYSE: DIS) ahead of earnings.

The company is going to report earnings Tuesday and Nathan wants to sell the May 105 call for 80 cents and buy the September 100 call for $5.80. The trading structure would cost him $5 and it breaks even at $105 or 3.81 percent above the current stock price.

The options market is implying a move of 3.5 percent on the earnings event and the stock has moved 2.5 percent on average on the event.

Posted-In: Dan Nathan Options ActionOptions Markets Media

 

Related Articles (DIS)

View Comments and Join the Discussion!