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.
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