Tony Zhang Sees Unusual Options Activity In Disney

On CNBC's "Options Action," Tony Zhang spoke about unusually high options activity in Walt Disney Co DIS ahead of the earnings report on Thursday. The options market is implying a move of 3.3% in either direction, which is the lowest implied move on Disney's earnings we have seen in the last eight quarters.

During the session on Wednesday, Zhang noticed a purchase of 305 contracts of the January $180/$200 call spread for $6.60. The trade breaks even at $186.60 or 4.78% above the current stock price. It can make a maximal profit of $13.40 if the stock trades to $200 or higher.