Disney (DIS) – Steaming Services – Nov 4th, 2019
Bullish Trade – DIS $132.75 – Consumer Discretionary
The S&P 500 (SPY) closed last week at a record of $306.14. The Federal Reserve Board’s interest rate cut, relatively strong earnings reports that beat expectations and renewed optimism about trade talks with China helped drive prices higher. SPY’s resistance is $306.19 and support is the old resistance of $302.50.
DIS Trade Idea:
On CNBC’s weekly OptionsAction show Friday, Dan Nathan proposed a Disney (DIS) trade. DIS’s OptionsPlay Technical Score is a neutral 5. Resistance is about $137 and support is about $127.54. Nathan noted that the new Disney+ streaming service will get instant distribution to many Verizon (VZ) subscribers. Disney could breakout higher, especially if the market continues its bullish move.
As a stop loss on this trade, we close trades and take losses when the price of a debit trade falls about 50% from what we paid for it. TIP: Adjust the Target Price and possible closing dates on the Trade Panel below to get a feel for the trade. Subscribers, click on the image or a View DIS Trade link to get to the live panel on OptionsPlay.com.
We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: DIS OptionsAction Trade
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