Walt Disney Co (NYSE:DIS) shares are down 7.2% to trade at $104.68, despite posting better-than-expected fiscal first quarter results. The media empire reported adjusted second quarter earnings of $1.63 per share on $25.98 billion in revenue, both of which topped estimates thanks to the company's experiences (theme parks, resorts) division.
Investors are also weighing commentary from Chief Executive Bob Iger about a successor when he steps down at the end of this year while Disney+ and Hulu streaming revenue grew 72% from a year ago to $450 million.
On the charts, DIS is trading at its lowest level since early December, slipping below key support near $108 and on track for its worst single-day drop since Nov. 13. Even so, the stock still holds a 14.7% gain over the past nine months.
Options traders are responding bullishly. At last check, over 64,000 calls have changed hands today, volume that's eight times the average intraday amount and almost double the number of puts exchanged. The weekly 2/6 110-strike call is the most popular, while the March 115 calls is also seeing notable attention.
The preference for calls is nothing new. DIS sports a 50-day call/put volume ratio of 1.93 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio indicates that traders have bought to open more than two DIS calls for every put during the past 10 weeks.
