We were assigned shares of Walt Disney (DIS) last week, and I am recommending a call to sell against them. The strike is comfortably out of the money in case we see a spike in the market following this week’s Federal Reserve meeting.
The company is scheduled to report earnings on May 11. If we are not called out of our shares at the end of the week, I will be recommending we temporarily exit the position ahead of the announcement and re-enter it once the earnings dust settles.
Note that this trade is only for people who already own DIS shares from a previous trade.
Current Stock Price: $111.82
Cost Basis: $126.90
Action: Sell to open the DIS May Week One (5/6) 115 Call for around $1.09, but adjust as needed to sell a call today
New Cost Basis: $125.81