By: Steve Smith
If you have been reading these emails for any length of time, you know that I rarely get into the nuts and bolts of an individual company.
I do share more with my students, so if you like this kind of information you can try out Options360 for just $19 right now.
Today, I need to chime in on Disney’s surprise move over the weekend…
They ousted Bob Chapek, who was the CEO of the company since February of 2020. Then, in an even more bizarre move, they replaced him with the former CEO Bob Iger.
Chapek replaced Iger in 2020 as CEO, and Iger stayed on as Chairman until he retired less than a year ago.
It’s clear that Iger wants to retire, but now he’s back in the driver’s seat for at least two more years, and I can only imagine the deal they made him to come back!
Disney stock popped today on the news, with a 5% jump on the day as of this writing (it is off the highs for the day, so that supports my thesis)…
However, this is what I wrote to Options360 members this morning:
DIS is up some 8% to around $100 on news Bob Iger is coming back.
Call me simple minded, but I’m not sure how ousting the current CEO Chapek on a Sunday night less than a year after he took the reins and is returning to Iger, who seemed pretty clear about his desire to retire, is good news.
Smells more like a company in turmoil. Not sure what he can accomplish before they need to start looking for a new CEO again.
Let’s sell a call spread on the notion there is limited upside in the near term.
To be fair to my students, and for liability reasons, I can’t share the actual trade with you…
It’ll be some of the best money you’ve ever spent… mostly cause you’ll be learning how to make it back!
To Your Success,
P.S. Even if you miss this one, don’t miss the next profit producing trade. We are up almost 30% YTD – winners and losers included!
At the same time our benchmark, the S&P 500, is down almost 18%.
That’s a 48% swing between the two! Don’t miss out on all you can learn about trading options, click here and begin your journey today.