5.1 C
New York
Saturday, March 30, 2024

Top Trades for Mon, 06 Nov 2017 12:12 – DIS

0
Top Trades for Mon, 06 Nov 2017 12:12 – DIS
psw-placeholder

AAPL/Batman – I don't know, if next Q beats this Q and if they are going to repatriate $280Bn in cash at 12.5% tax, there's a pretty good chance they'll drop a special dividend or buy back $100Bn (10%) of their own stock, which will boost future earnings by 10% – lots of ways to spin things positive when your cash flow is approaching $15Bn/Qtr.

Speaking of Billions, Thor did over $500M for the weekend in wide IMAX release (International).  Keep your eyes on IMAX and DIS – both in the LTP and the OOP.

As a new trade on DIS, I'd go this way:

  • Buy 10 DIS 2020 $90 calls for $17.50 ($17,500)
  • Sell 10 DIS 2020 $110 calls for $8.25 ($8,250)
  • Sell 5 DIS 2020 $92.50 puts for $8 ($4,000)  

That's net $5,250 on the $20,000 spread so $14,750 (280%) upside at $110 in two years.