Andrew Keene spoke on CNBC's Trading Nations about Walt Disney Co DIS. He noticed that the stock is showing signs of consolidation after a move lower and he expects it to trade up and potentially reach $100.
Keene believes that $90 is strong support and he wants to initiate a longer-term bullish position. He wants to buy the January 97.5/100 call spread for $0.50. The trade breaks even at $98 and it can maximally make a profit of $2, if the stock jumps to $100. The call spread offers an attractive risk-reward as its maximal profit is four times higher than its maximal loss.
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