Many traders may be hyper focused on earnings season kicking off and how markets will react to it.
My plan for today?
Follow the paper trail.
It worked yesterday…
And of course I want to do the same today… but more importantly, help you make some money as well.
|Ticker Code||Ticker Name||Ticker Industry||Price Change||Average Volume (50)*|
|GNUS||Genius Brands International Inc||Entertainment||-207.62%||97,651,847|
|DLPN||Dolphin Entertainment Inc||Entertainment||-13.89%||5,308,816|
|EROS||Eros International plc||Entertainment||-8.80%||3,985,416|
|DIS||Walt Disney Co||Entertainment||-6.43%||13,989,765|
|VIAC||CBS Corporation Common Stock||Entertainment||-1.73%||14,612,589|
|LYV||Live Nation Entertainment, Inc.||Entertainment||-17.10%||3,451,578|
|CHTR||Charter Communications Inc||Entertainment||-1.17%||1,087,588|
|CNK||Cinemark Holdings, Inc.||Entertainment||-31.86%||5,030,168|
|LIVX||Livexlive Media Inc||Entertainment||6.47%||1,207,562|
|YVR||Liquid Media Group Ltd||Entertainment||0.00%||1,006,332|
|AMC||AMC Entertainment Holdings Inc||Entertainment||-26.29%||6,844,576|
|BLIAQ||BB Liquidating Inc||Entertainment||-28.57%||32,926|
|LBRDK||Liberty Broadband Corp Series C||Entertainment||-7.28%||761,719|
|DISCA||DISCOVERY COMMUNICATIONS INC. Common Stock||Entertainment||-12.52%||5,079,280|
|HMTV||Hemisphere Media Group Inc||Entertainment||-10.28%||51,504|
|MSG||MCS Services Ltd||Entertainment||-50.00%||992,782|
With a spike in COVID-19 cases in many highly populated states across the country, the entertainment industry is facing risks and financial turbulence from which the industry as a whole may have been hoping to bounce back.
In fact, just yesterday California re-closed all indoor entertainment venues indefinitely.
Therefore, right now is the perfect opportunity to dig into the exact entertainment stocks which financial professionals are looking to trade today or in the days to come.
Disney (NYSE: DIS) could be under quite a bit of pressure right now. With Disney’s earnings announcement right around the corner, they may soon be forced to re-close venues which they just reopened.
According to a recent study, Disney’s streaming business operates around breakeven. Their cruise ships are docked indefinitely… Which means Disney’s revenue machine is their amusement parks.
That won’t be the case if Disney is forced to close their amusement parks right back down again.
While putting the pieces of Diney’s puzzle together right now may seem bearish, that didn’t stop Wall Street players from coming in late yesterday and buying…
120 Call Options
A $349k Purchase
Given these options expire this Friday, not only do these option players need Disney to go up – they need Disney to go up FAST!
Here’s my take on what they’re betting on… Disney won’t have very high earnings expectations ahead of its August 4 earnings report. Therefore, the stock may run between now and then. Their bar simply isn’t set very high right now.
Should gains trend above the 20-day simple moving average line and Disney could indeed move up to $120/share or higher, and I anticipate buying into the DIS July 17 120 Calls alongside the $349k option players.
Below Disney’s 20-day simple moving average line, and Wall Street’s $349k call option buyers may be out of luck, and I’ll look to make a move against their six-figure bet to make some money to the downside if Disney trades green-to-red today.
I’ll be in touch mid-day with updates and a watchlist. In the meantime, go here for a look at Disney’s fundamentals and latest news.
Disclaimer: This is not investment advice. This article is for information purposes only and opinion-based on financial advisor data across a selection of websites. Investors should be cautious about any and all investments and are advised to conduct their own due diligence prior to making any investment decisions.