Disney call volume is running 7x normal this morning as a large condor-ish 4way traded on the Amex about an hour into the day as shares traded near $45.03. Customer sold 8367 July 41 calls at 4.67 and sold 10,300 July 49 calls for 35cents while buying 8867 July 46 calls for 1.31 and 9045 July 45 calls for 1.83. Executing floor broker crossed the trade, and existing open interest suggests the 41 and 46 calls are likely closing, while the 45 and 46 calls are opening. Earnings last week saw shares lift a bit, and today’s trade appears to roll a long 41-46 call spread into a ratioed 45-49 call spread that would perform best if DIS breaks thru last week’s 45.56 52wk highs.
About the Author (Author Profile)
Henry Schwartz is the president of Trade Alert LLC, a provider of real-time options analysis tools to leading Wall Street firms. His systems analyze hundreds of thousands of transactions per second to help professionals identify and interpret market activity in real time, supporting informed trading decisions and intelligent idea generation. He has held institutional trading and management roles with Bank of America, Bear Stearns, Salomon Brothers and the Hull Group, and made markets on the CBOE and AMEX floors in the US, and EUREX and MONEP overseas. Prior to founding Trade Alert, he led the electronic market-making group at Bank of America coincident with the launch of the International Securities Exchange. He received his bachelor’s degree in Economics from the University of California, San Diego and his MBA from NYU’s Stern School of Business.