Disney (DIS) is up 32 cents to $35.48 and is one of 22 Dow stocks holding gains Monday afternoon. Noteworthy options trades on the media giant include an April 25 – 35 (2X1) put ratio spread for $1.82 on the International Securities Exchange. Data from the ISE indicate the investor bought 1 and sold 2 to open a new bearish 1X2. A shareholder might have initiated the srpead as a hedge, as the best payoff happens if shares fall to $25 through the April expiration — a decline of almost 30 percent in 179 days. Earnings will come into play on the afternoon of Nov 10.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.