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Mike Khouw Sees Unusual Options Activity In Walt Disney Co

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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


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