Disney (DIS) Offering Possible 33.33% Return Over the Next 16 Calendar Days

This article was originally published on this site

Disney’s most recent trend suggests a bearish bias. One trading opportunity on Disney is a Bear Call Spread using a strike $113.00 short call and a strike $118.00 long call offers a potential 33.33% return on risk over the next 16 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $113.00 by expiration. The full premium credit of $1.25 would be kept by the premium seller. The risk of $3.75 would be incurred if the stock rose above the $118.00 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Disney is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Disney is bearish.

The RSI indicator is at 32.22 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here


LATEST NEWS for Disney

NFL In 2020? Here Are 7 Stocks Football Fans Should Watch
Tue, 30 Jun 2020 00:52:32 +0000
The NFL is by far and away the most popular American sport based on television viewership ratings. Roughly 25% of the nation’s 100 most-watched programs of 2019 were NFL games. Furthermore, each NFL game reels in an average of 16.5 million pairs of eyeballs.As such, here are a few companies that could be heavily affected by the NFL’s eventual decision on playing the 2020 season.Walt Disney CoWalt Disney Co (NYSE: DIS) is the owner of ESPN, which the broadcasting rights for Monday Night Football. MNF is watched by roughly 13 million people per week, and the high demand among advertisers to reach these viewers generated $285 million for ESPN in 2019.Should the NFL play a season, ESPN will benefit greatly, as well as Disney. The opposite can be said should the league decide against a 2020 season. Fortunately, a season without fans in the stands — perhaps the most likely scenario — is not an option that necessarily affects ESPN. Per Chris Camillo of “Dumb Money Live,” Disney bolsters a pretty safe prospect over the long-term future.”When this is over, Disney is gonna come back, and I think that kinda sets a floor on Disney’s price,” he said on a recent episode. “We all know they’re coming back.”Since the beginning of the coronavirus pandemic, Disney’s stock has fallen about 21%. AT&T and ComcastAT&T Inc. (NYSE: T), the owner of DirecTV, is another media organization that could be heavily affected by whether or not the NFL decides to play a season in 2020. DirecTV powers Sunday NFL Ticket, a streaming platform that allows fans to watch any NFL game at any time throughout the season (save for games that are being broadcast in the watcher’s local channels).Of course, no NFL means big problems for a product like Sunday NFL Ticket, and thus big problems for DirecTV. According to Camillo, a lack of NFL could be the nail in the coffin for users who have been contemplating the switch from cable TV to streaming platforms. “Here’s the funny thing about AT&T and DirecTV — that (a lack of sports and the NFL) I think is just going to cause an acceleration of cord-cutting,” he said. “I think that, if we start to see these deals unraveling, and we think there’s a likelihood of NCAA getting canceled and maybe even the NFL…I would potentially short Comcast and AT&T pretty hard.”Since the beginning of the coronavirus pandemic, AT&T’s stock has fallen 22% to $29.58 at the time of this writing. Aramark and Cintas Aramark (NYSE: ARMK) and Cintas Corp (NASDAQ: CTAS) are two of the leading service vendors to NFL stadiums. These companies provide food, beverage, cleaning and operational services to a number of venues.Thus, Aramark and Cintas could be affected at a troubling clip if the upcoming NFL season is played without fans, which seems like the most probable situation. However, both of them service restaurants and schools without the country, which appear to be on a path to return to partial service by the end of 2020.”It’s not just sports. I mean, any time you do an event at these stadiums (there will be a problem)” said Jordan Mclain, another “Dumb Money Live” host. “So you’re not having the concerts, you’re not having the sports…these guys are gonna be in trouble without all that business.”Amarak is down over 35% since the beginning of the coronavirus pandemic. Cintas, on the other hand, has fallen around 10% in that time.Anheuser Busch and Molson Coors Beverage Co (NYSE: TAP) Sports and beer go hand in hand.One of the benefits that large, name-brand companies like Anheuser Busch Inbev NV (NYSE: BUD) experience with fans in the stands is the ability to provide one of few beverage options to fans. According to Mclain, this is a tremendous factor to think of when it comes to the potential of a 2020 NFL season without fans.”I think at home, people have access to a wider variety of drinks, so they’ll go get craft beer,” he said. “But when you’re at a stadium, they might have a few craft beer stands, but the majority most of the places (are selling) Bud, Coors…it’s about the availability.”Anheuser Busch is down around 25% since the beginning of the coronavirus pandemic.See more from Benzinga * 4 Stocks Poised To Breakout With The Return Of Live Sports(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Disney: Uncertainty Keeps This 5-Star Analyst on the Sidelines
Mon, 29 Jun 2020 23:47:33 +0000
Disney’s (DIS) plans for a gradual return to normality have been thrown into disarray, as the coronavirus has made it clear it has not left the building yet. The recent spike in cases caused the company to delay the opening of Disneyland in California, which was originally slated for July 17. Walt Disney World in Florida is scheduled to open its doors again on July 11 but that also appears highly unlikely now, considering the host of new COVID-19 cases in the state.Theme parks aren’t Disney’s only problem. No date has been set yet for the resumption of live movie production, either. What’s more, the highly anticipated release of its summer 2020 blockbuster, Mulan, has been pushed back yet again from July 24 to August 21.The lack of clarity has led to a reevaluation at investment firm Needham. 5-star analyst Laura Martin noted, “Owing to persistent COVID-19 uncertainties, we lower our FY20 DIS estimates to revenue of $68.1 billion (down 3% year-over-year and 5.5% below our previous estimate), and Adjusted EPS to $1.34 (down 77% year-over-year and 51% below our previous estimate).” Looking ahead to August’s FY3Q20 results, Martin expects revenue to decline by 35% year-over-year (13% below her original estimate) to $13.2 billion. Additionally, the analyst thinks adjusted EPS will plunge into the red, forecasting a loss of $0.65 per share. The figure is well below 3Q19’s EPS of $1.35, and lower than Needham’s previous call for EPS of $0.18.The one bright spot amid all of the anticipated year-over-year contractions is reserved for Disney’s OTT offerings. Based on these products, Martin believes “DIS will be a winner of the ‘streaming wars’.”The segment boasts three “unique” services – ESPN+, Disney+ and Hulu. These, according to Martin, provide Disney with “the ability to target different market segments and cross promote and bundle with discounts and a much more favorable subscription service than that of streaming leader and rival Netflix.”To this end, Martin keeps a Hold rating on Disney without suggesting a price target. (To watch Martin’s track record, click here)The rest of the Street remains cautiously optimistic about Disney. The analyst consensus rates the House of Mouse a Moderate Buy, based on 10 Buys, 11 Holds and 2 Sells. At $121.83, the average price target indicates upside potential of 12% over the coming months. (See Disney stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Unions sue three Nevada casino properties, claiming dangerous working conditions
Mon, 29 Jun 2020 21:58:06 +0000
The lawsuit filed Monday by the Culinary Workers Local 226 and Bartenders Union Local 165 against Harrah’s Las Vegas and the Bellagio and Signature Condominiums claims the companies have not sufficiently protected workers and their families from the spread of COVID-19 and that rules and procedures for responding to workers who contract COVID-19 have been inadequate. Harrah’s is owned by Caesars Entertainment Corp, and the Bellagio and Signature Condominiums are subsidiaries of MGM Resorts International.

Golf-FOX gives up U.S. Open rights to NBC
Mon, 29 Jun 2020 15:57:09 +0000
A crowded sports schedule caused by the COVID-19 pandemic has prompted FOX to choose the NFL and MLB over the U.S. Open, leading the U.S. Golf Association (USGA) to end its 12-year deal with the broadcaster and transfer it to NBC Universal. The U.S. Open originally scheduled for June was moved to September due to the new coronavirus outbreak, creating a logjam for FOX which also has broadcast rights for ratings behemoth the NFL as well as college football and Major League Baseball.

Were Hedge Funds Right About Dumping The Walt Disney Company (DIS)?
Mon, 29 Jun 2020 15:38:00 +0000
The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F […]

Be Sociable, Share!

Related Posts