11/12/2022 Plan:
This week we look at a play in Disney (Ticker: DIS)
11/12/2022 Plan (continued):
- DIS – Sell Dec 16 85/80 put spread for 0.50 OR
- DIS – Sell Dec 16 85 put for 1.00
- Prices are as of market close 11/11/2022, actual fill and strikes may differ depending on Monday’s open, post will be updated accordingly.
- All trades are for educational purposes and do not constitute advice
11/12/2022 Commentary:
Disney has not done too well recently, but it did bounce up nicely after a post earnings drop. If you want to get long at 52 week levels, selling the 85 put outright is a nice way to do it. As a trade, consider the 5 point put spread as a bet that DIS won’t drop below its recent low of $86.28
Feel free to Reach out with questions on this or anything else!
11/14/2022 Entry:
Sold DIS Dec 16 85/80 put spread for 0.46
11/20/2022 Update:
DIS sold off later in the week and the put spreads are worth 0.62, for a loss of $16/spread if one were to close now. With several weeks left, I will be keeping mine open. Disney was trading near $92 at the end of the week.
11/27/2022 Update:
With three weeks left, the DIS puts are worth 0.15 and could be closed for a $31 profit per put spread sold. I plan to keep them through this week, although there may be an opportunity to close at the end of the week if DIS stays at or above current levels. The big move last week was due to Bob Iger coming back to run the company. DIS has struggled recently, but I think this was a good move. Book recommendation – Bob Iger’s “A Ride of a Lifetime” was quite good.
12/4/2022 Update:
The DIS put spreads are down to 0.06 and can be closed at any time. They expire Next week on the 16th. I intend to try and close for 0.05 tomorrow.
12/11/2022 Update:
If you didn’t close the DIS put spreads, they are now worth 0.12. They expire this week (16th) and can be closed for a profit at any time. With DIS at 93.38, there is some space between it and the 85 short strike, but DIS can move, so don’t let it turn into a loser.
12/18/2022 Update:
The DIS put spreads expired worthless adding $46 of profit per put spread sold. A nice trade and despite the sell off last week, these weren’t really in any danger.
