DailyPlay – Opening Trade (DIS) – November 27, 2024

DIS Bullish Opening Trade Signal

Investment Rationale

The Walt Disney Company (DIS) recently filled its $114 gap, reaching our prior target, and is now targeting its 52-week high near $125. DIS has turned around its revenue and EPS growth, achieving record TTM revenues and net income.

Since breaking out above $96 and completing a bottoming formation, Disney has demonstrated a solid recovery. While it trades at a slight premium to the industry, its growth and profitability are outpacing its peers in the space.

DIS – Daily

Trade Details

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish Debit Spread

Details: Buy to Open 6 DIS Jan 17 $115/$125 Vertical Spreads @ $3.10 Debit per Contract.

Total Risk: This trade has a max risk of $1,860 (6 Contract x $310) based on a hypothetical $100,000 portfolio normally risking 2%. We suggest using 2% of your portfolio value and divide it by $310 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/Bullish

Relative Strength: 8/10

OptionsPlay Score: 115

Stop Loss: @ $1.55 (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