What’s Happening On Wall Street As Disney Preps for This Afternoon’s Earnings Call
Disney’s Q2 earnings report is happening this afternoon at 4:30 ET and already traders are reacting to what they think Disney may be reporting in just a few short hours.
As a piece on CNBC tells us, options traders don’t think that Disney will be revealing any surprises during the update.
Last night The Walt Disney Company finished in the red on the market. This is despite the belief from Morgan Stanley that the rating for the company is overweight. This however did not stop stock from going up to $210 from $200 at the start of the day.
Michael Khouw had this to say about the options market going into the earnings call, Right now, the options market is implying a move of about 4.5% [in either direction]. That’s somewhat more than what the stock has averaged over the last eight quarters.”
Yesterday, traders continued to make bearish bets on Disney even as stock continued to fall throughout the day. Khouw put it in perspective for CNBC saying,
“Interestingly, the most active options [in Wednesday’s session] were the June 180-puts,” Khouw said. “More than 7,000 of the June 180 puts were traded for an average price of around $7.10. Of course, the stock was trading down throughout the day, so ultimately they were paying closer to $8.60 for those, and buyers of those are obviously betting that the stock is going to fall after earnings and over the course of the next few weeks.”
Looking at today, Disney was trading about 1% higher than yesterday, but let’s keep an eye on things!
We’ll be following along with the Q.2 FY21 Earnings Report this afternoon and promise to keep you posted regarding the latest news and updates.
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