DailyPlay – Opening Trade (DIS) – October 11, 2024

DIS Bullish Opening Trade Signal

Investment Rationale

Casting a line to do some bottom fishing in The Walt Disney Company (DIS): DIS recently broke out above its trading range and has since pulled back to the $92 support level, offering an attractive risk/reward entry for bullish exposure. From a fundamentals perspective, the stock appears modestly undervalued. After struggling to grow over the past few quarters, DIS has reversed course, showing improvements in both revenue and EPS growth. For the trailing twelve months (TTM), the company has posted record revenues and net income. Also, ’tis the season for earnings announcements, and DIS will be reporting on November 14th—this event will be factored into our strategy selection.

DIS – Daily

Trade Details

Strategy Details

Strategy: Long Call Calendar Spread

Direction: Bullish Calendar Spread

Details: Buy to Open 8 DIS Oct 25/Nov 15 $95 Call Calendar Spreads @ $2.41 Debit per Contract.

Total Risk: This trade has a max risk of $1,928 (8 Contracts x $241) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $241 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is expected to continue higher off recent support.

1M/6M Trends: Neutral/Neutral

Relative Strength: 2/10

OptionsPlay Score: 64

Stop Loss: @ $1.22 (50% loss of premium)

View DIS Trade

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Thursday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

View DIS Trade