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Stock options disney

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stock options disney

Walt Disney Co NYSE: DIS reported earnings and markets reacted to options downside before disney shares back up this morning. My last trade on Disney stock was a huge win. I shorted DIS for free and it worked out perfectly. I sold longer-dated puts to buy shorter dated puts. Today I want to simply generate income from the price action in DIS stock. Fundamentally, I think that DIS will disney able to ride out the current wrinkles in its TV businesses. Management seems committed to adjust their models to fit the new streaming demands. And technically, I see clear areas of support from sell offs. This time, the initial negative reaction came from a period of sideways price action. This usually establishes a base from which they can bounce back. DIS stock is not too cheap, so it could still fall a bit. That said, I need to set a buffer to my trade. Markets have never disney higher. Options is at an all-time-highs on deteriorating global fundamentals. This creates an unusual situation that could end ugly. If markets in general correct, then DIS stock will also suffer. I will need to closely manage the risk of stock. The options market offers me hundreds of ways I can implement any strategy. Selling puts is dangerous and I only do it when I am willing and able to buy the stock options the strike sold. So typically I only do this in stocks options I believe in the company current value and the short term worst case scenario of its value. Selling stock puts requires margin and somewhat open disney to the downside. I can modify the disney to suit options smaller risk appetite. Trade 2 — An Alternative: This is also a bullish trade for which I collect 30 cents per contract. Someone who expects Disney to rally can use the proceeds to buy DIS calls. This would make them long the stock for free, which means the puts sold would pay for the upside potential of a rally. I am not obliged to hold the trades through their expiration dates either. I can close any trade at any time for partial stock or losses by simply reversing the process. Nicolas Chahine is the managing director of SellSpreads. As of this writing, he did not hold a position in any of the aforementioned securities. Article printed from InvestorPlace Media, http: Financial Market Data powered by FinancialContent Services, Inc. Nasdaq quotes delayed at least 15 minutes, all others disney least 20 minutes. Trading Advice Trade of the Day Trading Report How to Trade Options. Breaking news sponsored by googletag. More on InvestorPlace 5 Battered Stocks Investors Can Buy for Disney Rebound Returns 3 Dow Disney Components Options the Pavement 3 Stocks to Play the Stock Travel Bump 7 Healthcare Stocks That Will Give You Chest Pains 3 Grocery Stocks to Sell Stock Amazon Slaughters Them Is Costco the Next Target for Amazon? Rowe Price Funds to Buy Today. Is Costco Wholesale Corporation COST stock Next Target for Amazon? View and vote in our How confident are you about the U. Choose A Page About Options Press Options Resources Advisory Services Free Newsletters Free Reports Contact Us Advertise With Us Employment Privacy Terms and Conditions Stock and Disclaimers Media Sites Sitemap stock " footer-links". stock options disney

5 thoughts on “Stock options disney”

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