June 7th Options Now Available For Walt Disney Co. (DIS)

Investors in Walt Disney Co. ( DIS) saw new options begin trading today, for the June 7th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DIS options chain for the new June 7th contracts and identified one put and one call contract of particular interest.

The put contract at the $62.50 strike price has a current bid of 5 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $62.50, but will also collect the premium, putting the cost basis of the shares at $62.45 (before broker commissions). To an investor already interested in purchasing shares of DIS, that could represent an attractive alternative to paying $66.82/share today.

Because the $62.50 strike represents an approximate 6% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 94%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 0.08% return on the cash commitment, or 3.65% annualized — at Stock Options Channel we call this the YieldBoost.

START SLIDESHOW:
Top YieldBoost Puts of the S&P 500 »

Below is a chart showing the trailing twelve month trading history for Walt Disney Co. , and highlighting in green where the $62.50 strike is located relative to that history:

If you liked this article you might like

Market Selloff Survival Strategies: Cramer's 'Mad Money' Recap (Thurs 9/21/17)

Royal Caribbean Cruise Set to Sail Through Caribbean Hurricane Disasters?

Microsoft's New Xbox One X Shows It's Done Trying to Please Everyone

'The Handmaid's Tale' Emmy Win Is Really Big for Netflix

Stocks Dad Would Have Loved, And Why He Was Right