Walt Disney (DIS) is rallying today on news CEO Bob Chapek has stepped down and, in a surprise twist, will be replaced by former CEO Bob Iger. Iger will head the company for the next two years during the search for a new successor.
As you know, I was not a fan of Chapek’s management, and I think Iger’s return will be a positive for the company and the stock.
I am recommending a call to sell against our uncovered shares to generate income and reduce our cost basis on the position.
Current Stock Price: $97.70
Cost Basis: $127.19
Action: Sell to open the DIS Dec Week Two (12/9) 100 Call for around $1.92, but adjust as needed to sell a call today
New Cost Basis: $125.27