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Thursday, August 29, 2019 10:38:42 AM
Disney Streaming Survey Surprise Sparks Bullish Options Trading
By: Schaeffer's Investment Research | August 29, 2019
• Results from UBS suggested more households than expected plan to subscribe to Disney+
• One speculator sees more upside ahead for the Dow stock
The shares of Walt Disney Co (NYSE:DIS) are trading higher today following positive results from a recent survey regarding the entertainment powerhouse's Disney+ streaming service. Specifically, the projections for the number of U.S. households that plan to subscribe to Disney+ looks to be more than double what the company previously expected, per a recent UBS survey.
Disney projected 20% to 30% of broadband households would sign up for Disney+ by 2024, while the survey indicated up to 43% of consumers intend to subscribe. In response, DIS is up 0.9% at $137.80, at last check.
DIS has charged up the charts in 2019, so far having added 26%, with recent support emerging at the 120-day moving average. The shares saw an impressive streaming-related bull gap back in April, which paved the way to the stock's July 29 record high of $147.15.
At least one options trader today is betting on even more upside for the Dow stock in the near term. Amid accelerated activity -- the 20,000 calls on the tape so far is 1.5 times what's typically seen at this point -- a 1,000-contract block of weekly 9/13 140-strike calls was bought to open for $140,000 (number of contracts * $1.40 premium paid * 100 shares per contract).
This is the most the call buyer stands to lose, should DIS settle below $140 at the close on Friday, Sept. 13. Profit, meanwhile, will accumulate on a move above breakeven at $141.40 (strike plus premium paid).
Read Full Story »»»
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By: Schaeffer's Investment Research | August 29, 2019
• Results from UBS suggested more households than expected plan to subscribe to Disney+
• One speculator sees more upside ahead for the Dow stock
The shares of Walt Disney Co (NYSE:DIS) are trading higher today following positive results from a recent survey regarding the entertainment powerhouse's Disney+ streaming service. Specifically, the projections for the number of U.S. households that plan to subscribe to Disney+ looks to be more than double what the company previously expected, per a recent UBS survey.
Disney projected 20% to 30% of broadband households would sign up for Disney+ by 2024, while the survey indicated up to 43% of consumers intend to subscribe. In response, DIS is up 0.9% at $137.80, at last check.
DIS has charged up the charts in 2019, so far having added 26%, with recent support emerging at the 120-day moving average. The shares saw an impressive streaming-related bull gap back in April, which paved the way to the stock's July 29 record high of $147.15.
At least one options trader today is betting on even more upside for the Dow stock in the near term. Amid accelerated activity -- the 20,000 calls on the tape so far is 1.5 times what's typically seen at this point -- a 1,000-contract block of weekly 9/13 140-strike calls was bought to open for $140,000 (number of contracts * $1.40 premium paid * 100 shares per contract).
This is the most the call buyer stands to lose, should DIS settle below $140 at the close on Friday, Sept. 13. Profit, meanwhile, will accumulate on a move above breakeven at $141.40 (strike plus premium paid).
Read Full Story »»»
• DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must!
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