Brian Stutland's Walt Disney Co Trade

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On
CNBC's Options Action
, Brian Stutland shared his bullish options trade for
Walt Disney CoDIS
ahead of earnings next week. He thinks that the company is going to post good earnings results because it has a great movie line up. It is also in a good position to benefit from cheap oil prices, because consumers have more money in their pockets. Stutland added that
Walt Disney Co
had a 40 percent year over year growth and its price to earnings ratio of 25 is not totally ridiculously. Stutland wants to buy the August 28 expiry, 120 strike call for $2.70 and sell the August 28 expiry, 125 strike call for $0.80. The call spread would cost him $1.90 and the trade is going to be profitable if the stock trades above $121.90 at the August 28 expiry. The profit is capped at $3.10.
Posted In: CNBCMediaBrian StutlandOptions Action
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