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Disney Will Regain Its Magic: How to Trade It Now

Shares are now below their open from the Disney+ announcement.
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I still really like Disney (DIS) as an investment. The stock is down significantly below the 200-day moving average after seeming really bullish. In fact, the shares are now below their open from the Disney+ announcement that pushed the stock so high.

Essentially, we are within a few points of being able to get DIS at its pre-Disney+ launch.

The company is losing money now because of its parks, but that will not be a permanent thing. When they do come back on and the coronavirus is under control the parks might be fuller than ever.

I would be using puts to try to buy the stock. I can sell the DIS March $120 put at about $2.80. I would buy this stock for $117.20.

Trade:

Sell to open 1 March 20 $120 put at $2.80.

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(Disney is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells DIS? Learn more now.)

At the time of publication, Sebastian had no positions in any securities mentioned.

Action Alerts PLUS, which Cramer manages as a charitable trust, is long DIS.