Communication Services
DIS
The Walt Disney Company
Generate income from Disney (DIS) using covered calls and cash secured puts. Moderate premium with brand stability for the wheel strategy.
Monthly Premium1.5-2.5%
Annualized Return18-30%
Stock Price$105-120
IV RankModerate (35-50)
Options LiquidityExcellent
Dividend Yield0.9%
Why DIS for Covered Calls & Cash Secured Puts?
DIS offers decent premium with strong brand recognition. The stock has multiple revenue streams (parks, streaming, content). Good for investors who believe in Disney long-term.
Example Covered Call Trade
DISCovered Call
Strike Price$120 (7% OTM)
Expiration30 days
Premium$2.20 per share
Return If Flat2.0% ($220)
Return If Called8.7% ($980)
Keep Probability70% keep shares
Recommended Strategy for DIS
Sell calls 6-8% OTM monthly. DIS works well for the wheel when accumulating during pessimism about streaming.
Risks to Consider
- Streaming profitability challenges
- Park attendance variability
- Content costs rising
- Cord-cutting impact
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