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Why Disney Options At This Point In Time Should Be On Your Radar Screen

Very few option traders trade short term options on Disney. The first two printouts below help to illustrate this point. Look at how low the open interest was last Friday on one series of it's Calls and one series of it's Puts. .. Most traders of these options are focused on making interday trades. The low open interest on both of theses series of options tell us that. Now look at how Disney traded on Friday, the last day of the week. Many of the trades made are AI induced. Reversals happened in the morning for example at exactly at 9:31:00 a.m., 9:33:00 a.m., 9:37:00 a.m., 9:41:00 a.m. and other times all to the second of the minute.That's a big the hint it's Ai trading. Now it's one month chart. Disney is down. Now a five day chart. Here is where it gets interesting. What it shows us is that some one week Put options would have doubled in price on a Monday and some Calls would have doubled in price on a Tuesday and the Puts would have doubled in price on a Wed...
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Could These G.M. Puts Go Up 50% This Week?

Fighting strong stocks is a tough game especially with the indexes seemingly so strong. The Nasdaq Composite ended the holiday week at 23,366 - up 5.8% over four days. The DJIA turned up last week after a four-week slide. Now this.
G.M. only reports it's production numbers on a quarterly basis and it's next report is not due out until 2026. I also know that about six weeks ago G.M. popped on an earnings report.
So why will this week's stock performance be anything different for G.M. than last week? I don't have an exact reason however I just want you to hone in on this series of Puts which expire in two weeks. The open interest in this series of Puts is next to nothing. That's a sign of strenght, not weakness.
Two weeks away is a long time in the option market. I feel that G.M. is overextended as it seems to sell off near the close everyday. Yet then again, what do I know? Attempting to pick the tops of these swings is most often a losing proposition. Monday and a suprise. An afternoon readout.
$1.20 to $1.40 playing options two weeks out is not a good enough trade. Remember however I said it was going to jump on the opening like it always has. Here is a one day chart showing a stronger opening and a dip late on in the trading session.
Had you got in around 10:00 a.m. you could have picked up the Puts in the $1.08 cent range. That would have created a proftable trade. To be continued. Weekends with the it's accompanying Monday morning resets are a good time to figure out Monday trades like this. G.M. closed the day a touch lower.
*** A Tuesday look. Here is that same series of options again. It's not a bad trade if you pick this time to get out.
Here is it's closing five day chart at the end of Tuesday.
Look at how the Puts closed on the day.
Note they never made it to the bid $1.61 ask $1.71 level we saw back at 10:43 a.m.. A final comment. If these were easy options to trade the entire world would be doing it. Obviously they are not but they do pay off in spades when a catch a directional move correctly.

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