Walt Disney (DIS) is up today following the release of the company’s fiscal third-quarter results. While revenues missed estimates and Disney+ subscribers fell for the second quarter in a row, streaming losses are shrinking.
The company announced it will be hiking prices for Disney+ and cracking down on password sharing. While these moves should lead to increased subscribers and revenue, they will take some time to play out.
We have a good deal of positions on the board heading into Income Madness. Therefore, we are going to use the post-earnings pop to close our DIS put rather than continue to hold for another week.
There are simply better uses for our capital at this time than a company that faces as many headwinds as Disney does. Let’s book the loss and move on.
Current Stock Price: $88.80
Net Debit: $1.07
Action: Buy to close the DIS 18 Aug 86 Put for around $0.46, but adjust as needed to close today
Loss: $1.53, or $153 per contract