Walt Disney Stock (DIS) Trade Alerts – May 17 2018

May 17, 2018 | Latest, Trade Alerts and Ideas, Walt Disney Stock (DIS)

Disney Stock (DIS) trade alert Earlier in the year analysts were bullish on Walt Disney Stock (DIS). Then analysts turned negative.

Currently, of the analysts who report on Disney, 50% are sitting with hold ratings. The other half are on buy or strong buy.

Overall I think Disney will continue to do well and I am still risking capital in Disney trades.

Walt Disney Stock (DIS) Analysis

Looking at the recent chart, the stock is at the Upper Bollinger Band which marks it as overbought. This is part of the reason for the stock pulling back today to $104.09.

The stock had a major sell signal at the end of March when the 200 day moving average moved above the 100 and 50 day moving averages. That looks like it may change shortly.

The 21 day which has been below all three major moving averages has now turned higher and is back at the 50 day and could break above it later today (May 17 2018) signaling a major up turn in the stock. Momentum is rising and MACD still has an up signal in place. It issued an up signal on Apr 4 and confirmed it again on May 4. The up signal is still valid today.

Walt Disney Stock (DIS) Chart to May 16 2018

Walt Disney Stock Trade Details – Credit Put Spread

Sold 5 put contracts of June 15 expiry at the $97.50 put strike for $0.38 = $190

Bought 5 put contracts of June 15 expiry at the $90 put strike for $0.06 = ($30.00)

Commission: $7.50

Potential Profit: $152.50

Capital at risk: $3750.00

Potential Return: 4%

Small Portfolio Trade

This is the type of trade I did a lot of when I was growing my portfolio. For small portfolio investors, this risks just $3750 of capital but the return could be huge at 4%. Done monthly, this is 48% annually.

That means if I had just $3750 to start off my portfolio, by the end of the first year I would have earned $1830.00 in gains. This is how I grew my small portfolio to the size it is today.

Thank you for not posting these trades to my Public Yahoo Forum. Questions? Use ASK TEDDI.