"I like to look at contrarian positions that I can go into next year with," O'Leary said during CNBC's "Fast Money Halftime" report Monday afternoon. "The debate over ESPN has killed the price to earnings ratio of this stock, almost down 20% to the market."
Subscription numbers for ESPN released by the data agency Nielsen indicated a decline this year. However, O'Leary believes that to be already baked into the stock.
"It's been trading at $92 and the thesis is worst case for ESPN. But, I look at it from the point of I'd like to own a position that's going to be less volatile than the market," O'Leary stated.
What's not priced into the stock, he explained, was the performance of the Disney theme parks in China, notably Shanghai.
"My guys tell me over there the place is packed and we stopped talking about it, so I'm assuming good numbers will be coming out of there in 2017," O'Leary noted.
Also not factored into the stock, the box office. "I've seen the roster of what they've done in the box office looking very strong there," he added.
"What we'll get is more confidence in the management team to milk all the opportunities they have in earnings and a slight increase in the PE next year, as confidence comes in. All in a stock that I think will be 20% less volatile than the market," O'Leary contended.