Unusual Options Activity in Disney $DIS (1)

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Unusual Options Activity in Disney DIS
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• Hi, My name is Steve and Im with Options Trading
  Research, today were reviewing our recently
  published article

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• Unusual Options Activity in Disney DIS

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• As many of you know, unusual options activity can
  be a valuable indicator as to what traders are
  thinking, and more importantly, where these
  stocks are heading in the short-term.

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• This is something professional options traders
  pay a lot of attention to, and for good reason
  Unusual options activity can tip off big moves
  in a stock, either up or down.

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• So lets take a look at some interesting
  activity that caught our eye this week Disney
  DIS is, of course, one of the largest and most
  popular entertainment companies in the world.

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• The company is worth over 200 billion and
  generates over 50 billion in sales each year.
  For a good description of the company, follow the
  link.

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• DIS is trading at 118.34, up 28 for the year.
  Thats just 3 below the 52-week high, and 35
  above the 52-week low.

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• So what does unusual options activity in DIS tell
  us?

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• Omnipresent entertainment giant DIS is having an
  excellent year after showing a strong recovery
  since September. The stock has now significantly
  outperformed the overall market, and has been one
  of the top DJIA members this year.

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• A big reason for Disneys climb is the upcoming
  Star Wars movie being released in December. The
  new movie has already set records for pre-sale
  tickets. And, the associated merchandise if
  flying off the shelves.

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• Heres the deal
• This week, a large amount of calls traded in DIS
  options. Keep in mind, a call option makes money
  when the underlying stock goes up before its
  expiration date.

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• Conversely, selling a call option is beneficial
  when a stock goes lower or stays neutral. To be
  more specific, a trader sold a block of 10,700
  April 130 calls.

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• These calls were sold for 2.62, resulting in
  total collected premium of close to 2.8 million.
  The volume far exceeds the open interest, so
  this is definitely opening action.
• Heres the chart of DIS

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• As you can see, DIS has rocketed higher after
  dropping sharply during the August correction.
  Basically, since the beginning of October, the
  stock has done nothing but gone up. The price is
  now well over the 50-day moving average.

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• Despite the strong performance of late, the block
  of calls was sold at the 130 strike, although
  thats still over 10 higher than the current
  price.

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• Even though April is still several months away, a
  Star Wars bump is already being priced in to some
  extent. Moreover, these calls may be part of a
  covered call strategy, i.e. the calls were sold
  against a long stock position.

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• In that case, its still a bullish strategy that
  will make money up to 130. In other words, 130
  is far enough away that I would consider this a
  bullish signal on Disney, despite the potential
  ceiling.

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• More Options Trading Ideas

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• Keep in mind, theres a lot more unusual options
  activity going on than what we discuss here. We
  just try to bring you what we feel are the most
  significant ones and the ones you might actually
  be able to make some money on!

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