The shares of Walt Disney Co (NYSE:DIS) are down 5.7% before the open. While adjusted fiscal fourth-quarter earnings of $1.11 per share topped estimates, revenue of $22.46 billion fell short of expectations. The company noted that while streaming service Disney+ added 3.8 million subscribers, ad revenue for its linear TV business continued to fall, and the YouTubeTV carriage spat looms large.
Should these losses hold, DIS will mark its biggest single-day percentage drop since April and snap a four-day win streak. The equity yesterday reclaimed its 80-day moving average and hit its highest level since September, but is likely to fall back into that consolidation pattern today. Longer term, the shares sport a 15.5% year-over-year lead.
Options traders have been much more pessimistic than usual toward DIS. This is per the security's 50-day put/call volume ratio of 1.02 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which is higher than 93% of readings from the past year.
Echoing this, the equity's Schaeffer's put/call open interest ratio (SOIR) of 1.16 also stands in the 93rd percentile of readings from the past 12 months. This means short-term traders lean bearish as well.
It's worth mentioning that Walt Disney stock usually outperforms options traders' volatility estimates, as evidenced by its Schaeffer's Volatility Scorecard (SVS) of 89 out of 100.
