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Late To The Party Option Players - Disney

Can late to the party option traders make money? It's something to consider? These Call options expire this Friday. There was news on it before the opening today. The second chart below a few minutes later shows it hanging tough. At 10:01 a.m. we now checking out the Puts. The bid and ask on the Puts are very tight. That also makes us ask what happened to the Disney 101 Calls that we first looked at? Here is what the chart now looks like. More Call option players have jumped in to play the upside that the downside. Might one do a spread and try to play it both ways hoping for a breakout either way? That's an option to consider. Disney has being a dog of a stock now for a year so might some profit taking set in? How is Disney going to pay for another theme park? With that on their plates forget any share buy back programs. They are taking on new risks in a period of global uncertainity. Are late to the party option traders best just to stay away from this unexpected situ...
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Roku And It's 2nd Quarter Earning Report

Let's start with the time period of Thursday morning with an earning's report coming out after the closing bell. Look at how crazy expensive these three series of Call options are. They are the Roku "out-of-the-money" Call options that expire tomorrow. The volume in them is not all that crazy but if I owned the stock I would be tempted to sell the Calls against my position and hope they would expire worthless. Tomorrow is Friday August 2nd.
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Why pay so much? Why pay $4.05 for a Call with a striking price of "58" with one trading day to go in the contract? The stock would have to jump four dollars just to get your money back? Talk about stupid? Yet then again Netflix, a company also in a similiar space sometimes moves like ten dollars in one day. Here now is a look at what happened by showing tomorrow's five day chart.
Down $2.19 on the day to $53.14 with the DJIA down over 600 points.
Say goodbye to those Calls if you ever bought in. Now let's look at it's year-to-date chart.
Can you see how it dropped about $35.00 quickly on the release of it's first quarter's earnings? That's part of the reason why these Calls were so expensive. On good news it could have really popped. So what were it's second quarter earnings actually like?
It's still reporting losing money per share however their guidance is starting to look more promising. Having the markets drop over 600 points on the day (it was down even more than at one point during the day) really squashed any upside potential. The game never ends. Here now is how next weeks 53, 54 and 55 series of Calls are trading.
Pick you battle. How did things turn out four days later in a crummy market? Not good. Look at these same options. People however are now waking up to the fact that the quarterly earnings report was not all that bad. Trading options is never a walk in the park. There is still time for these Calls to suprise.
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