Walt Disney (DIS) has been making headlines recently over its ongoing feud with Florida Gov. Ron DeSantis. This week, the company filed a new lawsuit accusing DeSantis of leading a “targeted campaign of government retaliation.”
The drama has not affected the stock price, nor do I expect it to going forward. DIS has outperformed the broader market this year, rising 4% over the past month and nearly 13% year to date.
I am recommending we roll our call out one week and to a higher strike to generate more income and pick up another $1 in potential capital appreciation.
Current Stock Price: $98.30
Cost Basis: $104.73
- Buy to close the DIS Apr Week Four (4/28) 98 Call for around $0.85
- Sell to open the DIS May Week One (5/5) 99 Call for around $1.33
- Set initial credit limit at $0.48, but adjust as needed to roll today
New Cost Basis: $104.25