Market Overview

Mike Khouw Sees Unusual Options Activity In Walt Disney Co

Share:
Related DIS
Should Disney Sell Itself? Analyst Says Not Likely
Hollywood Seeks Salvation At San Diego Comic-Con In Midst Of Summer's Box Office Slump
Sadoff Investment Management Llc Buys Alphabet Inc, Manulife Financial Corp, Walt Disney Co, ... (GuruFocus)

On CNBC's Options Action, Mike Khouw spoke about bullish options activity in Walt Disney Co (NYSE: DIS). There was two times higher call options volume than the daily call options trading volume on Monday, and most of it was done with the March 92.5/95 one-by-two call spread.

Khouw noticed that a trader bought 2,500 contracts of the March 92.5 call options for $2.10 per contract, and sold 5,000 contracts of the March 95 for $1.05 per contract.

The trader spent no money to make this trade and he probably made it against a long stock position, Khouw added.

The trader is betting that Walt Disney Co is going to trade to $95, or 3.5 percent higher at the March expiration. The trade makes a maximal profit at $95, and it starts to make losses above $97, which is an all-time high for Disney.

Posted-In: Mike Khouw Options ActionsCNBC Options Markets Media

 

Related Articles (DIS)

View Comments and Join the Discussion!