Followers | 689 |
Posts | 143817 |
Boards Moderated | 35 |
Alias Born | 03/10/2004 |
Monday, May 24, 2021 1:46:18 PM
By: Schaeffer's Investment Research | May 24, 2021
• Disney took a hit after its May 14 earnings, thanks to disappointing subscriber growth for its Disney+ streaming service
• Disney's options pits have been much for put-heavy than usual
Walt Disney Co. (NYSE:DIS) reported earnings a little over a week ago, after the close on Thursday, May 14. The firm's earnings and revenue bested forecasts, but a Disney+ subscriber miss ultimately sunk the stock. The equity's 160-day moving average wound up containing most of this post-earnings carnage by mid-week last week, and today, DIS is up 1.6% at $174.44, though its next obstacle will be reclaiming its 140-day moving average. Below, we'll parse through some of the option activity that went down around Disney's fiscal second-quarter report, as well as the best way to play the Blue Chip now that earnings are in the rearview.
Amid all the earnings excitement, Disney stock popped up on Schaeffer's Senior Quantitative Analyst Rocky White's list of stocks that attracted the most option volume during the past 10 days, with names highlighted in yellow new to the list. According to White, 196,108 calls and 142,295 puts were exchanged. The most popular contract during this period was the May 175 call, followed by the 172.50 call in the same series. The most popular put during this period was the May 170 contract.
Calls are still slightly outnumbering puts today, and at last check, 36,000 calls and 21,000 puts were exchanged. The weekly 5/28 175-strike call is the most popular, followed by the June 180 call, with positions being opened at the former. This suggests these traders are pricing in more upside for for the underlying stock by the time of these contracts' respective expiration dates.
It looks like option bears ramped up their activity during this time period. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), DIS sports a 10-day put/call volume ratio that stands just below the top quartile of its annual range, suggesting puts are being picked up at a much quicker-than-usual clip.
Despite Alibaba stock's tumultuous year on the charts, analysts remain hopeful. Of the 18 in coverage, 17 call it a "buy" or better, compared to one "hold" rating. Meanwhile, the 12-month consensus price target of $299.44 is a 42.6% premium to current levels.
With a post-earnings volatility crush coming into play, now might be the perfect time to speculate on Disney stock's next move with options. The security's Schaeffer's Volatility Index (SVI) of 23% sits in the lowest possible percentile of its 12-month range. This means option players are pricing in lower volatility expectations than they have all year. Plus, the security's Schaeffer's Volatility Scorecard (SVS) ranks at 80 out of a possible 100, implying the stock tends to outperform these volatility expectations -- a good thing for option buyers.
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. Caveat emptor!
• DiscoverGold
Recent DIS News
- Nike Shares Surge 7% Pre-Market as Elliott Hill Becomes CEO; FedEx Shares Tumble 13% After Profit Miss • IH Market News • 09/20/2024 10:02:58 AM
- Intel Secures $3.5 Billion Subsidy, Stellantis Backs EU Emissions Targets, BP and Apollo Reach $1 Billion Deal • IH Market News • 09/16/2024 10:03:27 AM
- GameStop plunges 11% on stock offering, DJT drops post-debate, GSK fails shingles vaccine trial • IH Market News • 09/11/2024 10:25:41 AM
- Dell, Palantir, and Erie Will Be Added to the S&P 500; Boeing Avoids Strike; Apple Event Takes Place Today • IH Market News • 09/09/2024 10:05:35 AM
- Broadcom Down 10% Post-Earnings, UiPath Up 8%; Qualcomm Eyes Intel Assets; Salesforce Acquires Own Company • IH Market News • 09/06/2024 11:59:00 AM
- Qualcomm Develops Mixed Reality Glasses; Verizon to Boost Dividend, Eyes Acquisition; Samsonite Plans US Dual Listing • IH Market News • 09/05/2024 10:11:35 AM
- DIRECTV College Football Fans Sidelined by The Walt Disney Company on Opening Weekend to Force Them to Buy Other Disney Channels and Services • PR Newswire (US) • 09/01/2024 11:05:00 PM
- Big Lots Falls 27%, Considers Bankruptcy; DraftKings Acquires Simplebet, Berkshire Hits $1 Trillion • IH Market News • 08/29/2024 10:06:50 AM
- Futures Pointing To Modestly Lower Open On Wall Street • IH Market News • 08/27/2024 01:09:07 PM
- U.S. Index Futures Edge Higher, Oil Prices Dip • IH Market News • 08/27/2024 09:37:02 AM
- Apple Names New CFO, Sony Hikes PS5 Price in Japan, Santander Launches Share Buyback • IH Market News • 08/27/2024 09:35:22 AM
- Dow Sets New Record Closing High But Nasdaq, S&P 500 Give Back Ground • IH Market News • 08/26/2024 08:44:00 PM
- Schwab and Snowflake Retreat in Premarket, WeRide Postpones IPO, Halliburton Cyberattack, McDonald’s Instagram Hack • IH Market News • 08/22/2024 09:37:42 AM
- The Walt Disney Company Board Names James P. Gorman as Succession Planning Committee Chair • Business Wire • 08/21/2024 08:15:00 PM
- Walmart Sells JD.com Stake, Microchip Suffers Cyberattack, Union Pacific Warns of Strike in Canada, and Latest News • IH Market News • 08/21/2024 12:12:11 PM
- Berkshire Reduces Stake in BofA, Hawaiian Airlines Soars 10%, Paramount Receives $4.3B Offer, and More • IH Market News • 08/20/2024 09:56:02 AM
- FuboTV Soars 12% After Venu Sports Block, Goldman Sachs Lowers U.S. Recession Odds, BHP Ends Chile Strike • IH Market News • 08/19/2024 09:28:19 AM
- Deutsche Bank Faces Shareholder Backlash, Bank of America Sponsors 2026 World Cup, Quanterix CEO Buys More Shares • IH Market News • 08/16/2024 10:03:21 AM
- Disney Names Adam Smith Chief Product & Technology Officer, Disney Entertainment & ESPN • Business Wire • 08/15/2024 07:06:00 PM
- Starbucks Rises 3%; Disney Unveils New Films and Expansions; Uber CEO Questions Tesla Robotaxi Viability, and More • IH Market News • 08/12/2024 09:46:16 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/09/2024 08:33:36 PM
- TSMC July Revenue Surges 45%, Nasdaq Accelerates Penny Stock Delistings, Moody’s Downgrades Intel to BAA1, and More • IH Market News • 08/09/2024 09:44:44 AM
- Jobless Claims Data May Lead To Initial Strength On Wall Street • IH Market News • 08/08/2024 01:06:34 PM
- Intel Sued by Shareholders; JPMorgan Raises Chance of Recession; Roblox Blocked in Turkey; Micron Resumes Share Buyback • IH Market News • 08/08/2024 09:48:43 AM
- U.S. Stocks Move Back To The Downside After Initially Extending Yesterday’s Rebound • IH Market News • 08/07/2024 08:56:08 PM
FEATURED Cannabix Technologies and Omega Laboratories Inc. Advance Marijuana Breathalyzer Technology - Dr. Bruce Goldberger to Present at Society of Forensic Toxicologists Conference • Sep 24, 2024 8:50 AM
FEATURED Integrated Ventures, Inc Announces Strategic Partnership For GLP-1 (Semaglutide) Procurement Through MedWell USA, LLC. • Sep 24, 2024 8:45 AM
Avant Technologies Accelerates Creation of AI-Powered Platform to Revolutionize Patient Care • AVAI • Sep 24, 2024 8:00 AM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM