Our Walt Disney (DIS) Apr Week Five (4/29) 128 Put is deep in the money after Netflix’s (NFLX) subscriber losses triggered a sell-off in DIS.
Disney is increasingly seen as a streaming play, but unlike Netflix, it has a number of other profitable businesses. Travel is on the rebound, which should benefit Disney’s theme parks.
I am recommending we accept shares. I want to focus on capturing potential appreciation going forward while selling calls for income.
Current Stock Price: $113.63
Cash in Hand: $1.10
Action: Accept shares
New Cost Basis: $126.90