The Walt Disney Co. (DIS)
Update 5/11/2017: DIS fell after earnings were published and then moved into a sideways correction. I exited at 18.7% of maximum potential profit.
Shares declined by 1.9% over two days, or a -339% annual rate. The options position produced a 23.1% yield ond ebit for a +4,206% annual rate.
DIS publishes earnings on Tuesday after the closing bell.
I shall use the series of weekly options that trade for the last time 10 days hence, on May 19.
Implied volatility stands at 19%, which is 1.9 times the VIX, a measure of the volatility of the S&P 500 index.
DIS’s IV stands in the 52nd percentile of its annual range and the 76th percentile of its most recent broad movement.
The price used for analysis was $11186.
The premium is 50% of the width of the position’s wings.
The risk/reward ratio is 1:1.
Decision for My Account
I have entered a position on DIS as described above. The stock at the time of entry was priced at $111.85.
By Tim Bovee, Portland, Oregon, May 9, 2017