Mike Khouw Says Disney Shares Could Move By This Much Into Friday's Close

Walt Disney Co DIS is scheduled to report results Wednesday afternoon. The entertainment giant also celebrates its rising star in the premium streaming market, Disney+, turning two years old.

On CNBC's "Options Action," Mike Khouw of Optimize Advisors said there were 2.6 times more calls than puts. That’s around the average over the course of the last 20 trading days, he stated.

The options market is implying a move of about 4.7%, which is “in-line with the 4% or so that the company has averaged over the past eight reporting quarters,” Khouw said.

The most active was the November 12 weekly 180 calls, with 8,500 of those being traded at an average price of $2.25. This implies an upside into Friday’s close, Khouw mentioned. He added, however, that a lot of the call activity, including the December 190s were sellers, which could be because the stock is currently trading at a rich valuation.