Put sale shows support for Disney

A large “nickel strategy” is betting that any losses in Disney will be limited in the next month.

optionMONSTER systems detected the sale of 2,094 May 60 puts for $0.05. The volume was more than 10 times the strike’s previous open interest, clearly showing that this is a new position.

The put seller keeps the nickel as profit as long as DIS remains above $60 through expiration in mid-May. The risk is high, however, as losses would be much greater than that potential gain if the stock drops sharply. This is why such trades have been likened to “picking up nickels in front of a steamroller.”

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