Disney Call Option Holders Hit the Exit as Shares Sink Amid Weaker Guidance
$迪士尼 (DIS.US)$ call option holders are rushing for the exit before the contracts become worthless as shares of the entertainment giant tumble after giving a weaker fiscal third-quarter outlook for its entertainment direct-to-consumer.
The company also gave a full year outlook that's slightly below Wall Street estimates. The company expects full year adjusted earnings per share to grow 25%. Analysts expect a 25.3% growth, the Wall Street Journal reported. Shares plunged 10% to $104.428 at 12:32 p.m. in New York.
Revenue for the second quarter ended March 30 reached $22.08 billion, according to Disney's earnings release on Tuesday. That missed the $22.14 billion expected by analysts polled by Capital IQ, MT Newswires reported. The weaker guidance and revenue miss overshadowed the positive development in the company's profit. Disney reported second quarter adjusted earnings of $1.21 a share, beating analysts' estimates of $1.10.
Revenue for the second quarter ended March 30 reached $22.08 billion, according to Disney's earnings release on Tuesday. That missed the $22.14 billion expected by analysts polled by Capital IQ, MT Newswires reported. The weaker guidance and revenue miss overshadowed the positive development in the company's profit. Disney reported second quarter adjusted earnings of $1.21 a share, beating analysts' estimates of $1.10.
About 304,670 call options were traded as of 1:01 p.m. in New York, almost double the put options. The most-active contract was the call option that gives the holder the right to buy Disney shares at $108 each by the end of the week, with 17,360changing hands so far, according to data compiled by moomoo. The price of those calls shrank by 97% to less than 30 cents.
A close second are $107 calls expiring by Friday, with volume climbing to 17,109 Tuesday morning compared with 74 contracts traded just a day earlier.
CFRA cut its price target on Disney by $23 to $116, as it sees the company's total enterprise value falling to 13.4 times earnings before interest, taxes, depreciation and amortization, below its three-year average of 13.6 times, MT Newswires reported.
"We have less confidence in DIS realizing consistent results in its Entertainment and Sports units," CFRA said, according to the report.
Among Disney options expiring next week, the heaviest volume was in calls that give the holder the right to buy the company's shares at $115 each. About 13,180 contracts have traded so far as the value of those calls sank 96%.
But after the sell-off, 10 of 15 technical indicators tracked by moomoo are flagging that the stock is now oversold and could be poised for a rebound.
Disclaimer: Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. All company analysis information is provided by third parties and not by Moomoo Financial Inc. Any illustrations, scenarios, or specific securities referenced herein are strictly for informational purposes and is not a recommendation. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct.
免責聲明：社區由Moomoo Technologies Inc.提供，僅用於教育目的。
更多信息
評論
登錄發表評論
Moomoo社群經營
Former editor at Bloomberg, ex-commentary editor at Lazard. Posts aren’t investment advice. Views are just mine.
5778粉絲
16關注
1.6萬來訪
關注
RipTides : 迪士尼很糟糕。
73922152 : 這就是我來這裡要說的！但是我不能對我妹妹說這樣讓我們拿好萊塢的錢跑吧！！！
Svetlana Polishuk : 是
Paul Bin Anthony : 3 年前，當我獲得獎勵