Walt Disney is already at record levels, but one investor thinks
there is still magic in the stock.
optionMONSTER's Heat Seeker monitoring program detected the
purchase of 25,000 January 2015 75 calls for $1.18 and the sale of
an equal number of January 2015 80 calls for $0.69. Volume
was more than 14 times the open interest at each strike, indicating
that a new position was opened.
bullish call spread
is a long-term bet that the media giant will continue to rally in
the next 22 months. It cost $0.49 to open and will inflate to $5 if
DIS closes at or above $80 on expiration--a profit of 920 percent
on a 40 percent gain in the share price. (See our
section for more on how to generate leverage with options.)
DIS rose 1.12 percent to $56.94 yesterday and is up 32 percent in
the last year, after breaking out to new all-time highs last May.
The bullish strategy was the largest trade on a single-name stock
in the entire session.
Total option volume in the name surpassed 67,600 contracts
yesterday, 8 times greater than its daily average. Calls
outnumbered puts by a bullish 9-to-1 ratio.