Disney Stock Steams on Streaming, $115 Calls Hit Trading Streak

Disney owns Disney+, Hulu, and ESPN+, streaming services that only started bringing quarterly profits over the summer. Disney added 4.4M new subscribers to Disney+ in the most recent quarter. Meanwhile, in the Cable TV segment, networks like ABC and FX brought in revenue that fell 6% to $2.5B. Cable income fell 38% $498M.

“As I reflect on the two years since I returned to the company, I’m incredibly proud of our progress. We have emerged from considerable challenges and disruption, and we’re well positioned for growth,” Chief Bob Iger said during an earnings call Thursday. “We put in place specific strategies to generate growth across our businesses, and our solid results this quarter indicate they’ve been successful.”

Park and cruise income meanwhile fell 4% to $1.66B.

Options on the underlying stock flew to match the stock price, climbing higher on the surprise good news. $115 calls attracted the most trading volume on Thursday. The calls saw 23k contracts changing hands, compared to an Open Interest of just 6K, and expire November 15th, tomorrow.

The contracts give holders the right to buy DIS for 115/share for 100 shares, at an average price of 9.5C for the privilege. DIS trades at 109/share, even after a 6.5% jump.

After trading opened Thursday, the contract price shot up more than 400%, reacting to the underlying price jumping nearly 13%. The price of the contract then fell back 77%, from a high of $1.59

Overall, the Call Put volume was 69:31, 327k to 147k.