DailyPlay – Opening Trade (DIS) – November 6, 2024

DIS Bullish Opening Trade Signal

Investment Rationale

The Walt Disney Company (DIS) stock has recently been in a very tight trading range between $95 and $97, as it appears undecided on its next direction. With earnings scheduled for November 14, this announcement could serve as the catalyst needed for an upside breakout. From a fundamental perspective, the stock appears modestly undervalued. After struggling to grow over recent quarters, DIS has reversed course, showing improvements in both revenue and EPS growth. Over the trailing twelve months (TTM), the company has posted record revenues and net income.  We will look to get bullish and use call options with an expiration that extends well beyond the earnings date.

DIS – Daily

Trade Details

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish Debit Spread

Details: Buy to Open 4 DIS Dec 16 $93/$105 Call Vertical Spreads @ $5.17 Debit per Contract.

Total Risk: This trade has a max risk of $2,068 (4 Contracts x $517) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $517 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is expected to continue its bullish trajectory.

1M/6M Trends: Bullish/Neutral

Relative Strength: 3/10

OptionsPlay Score: 99

Stop Loss: @ $2.59 (50% loss of premium paid)

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 Tuesday’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