Long-Term Bull Put Spread Provides Opportunities for Disney Bulls

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>Gavin McMasterMon, September 29, 2025 at 1:00 PM GMT+2 3 min readDisney (DIS) is currently one of the most oversold stocks in the Dow Jones Index but is holding nicely above the 200-day moving average while showing good accumulation.A graph on a computer screen AI-generated content may be incorrect.Government Shutdown, Job Report and Other Key Things to Watch this WeekPayPal Could Still Be 20% Too Cheap - Use Options to Play PYPLOur exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today!Options flow was positive on Friday with net trade sentiment of +$101,700 and a delta imbalance of 33,763.A screenshot of a computer AI-generated content may be incorrect.Analysts maintain a positive outlook for DIS stock with 20 Strong Buy ratings, 2 Moderate Buy ratings and 6 Hold ratings.A close-up of a chart AI-generated content may be incorrect.DIS BULL PUT SPREADToday, we’re going to look at a bull put spread trade, but instead of using a regular monthly expiration, we will look at a longer-term trade.Longer-term option trades tend to move a little slower than shorter-term trades. That allows more time to adjust or close, but also means a lower annualized return.As a reminder, a bull put spread is a bullish trade that also can benefit from a drop in implied volatility.The maximum profit for a bull put spread is limited to the premium received while the maximum potential loss is also capped. To calculate the maximum loss, take the difference in the strike prices of the long and short options, and subtract the premium received.Implied volatility is currently sitting at 23.56% which gives DIS and IV Percentile of 42% and an IV Rank of 15.30%.To create a bull put spread, we sell an out-of-the-money put and then by a put further out-of-the-money.If we go out to December, we could sell the December 19 put with a strike price of $100 and buy the $95 put, which would create a bull put spread.This spread was trading yesterday for around $0.57. That means a trader selling this spread would receive $57 in option premium and would have a maximum risk of $443.That represents a 12.87% return on risk between now and December 19 if DIS stock remains above $100.If DIS stock closes below $95 on the expiration date the trade loses the full $443.The breakeven point for the bull put spread is $99.43 which is calculated as $100 less the $0.57 option premium per contract.That breakeven price is around 12.37% below Friday’s closing price.A screen shot of a graph AI-generated content may be incorrect.Conclusion And Risk ManagementOne way to set a stop loss for a bull put spread is based on the premium received. In this case, we received $57, so we could set a stop loss equal to the premium received, or a loss of around $57.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,688.46 +27.25 (+0.41%)Dow 3046,397.89 +81.82 (+0.18%)Nasdaq22,660.01 +68.86 (+0.30%)Russell 20002,430.53 -4.72 (-0.19%)VIX16.13 +0.01 (+0.06%)Gold3,887.00 +31.80 (+0.82%)PortfolioSign in to access your portfolioSign inTop gainersWOLF Wolfspeed, Inc. 28.95 +6.85 (+31.00%)UNFI United Natural Foods, Inc. 37.64 +5.88 (+18.53%)SMTC Semtech Corporation 71.45 +9.47 (+15.28%)BE Bloom Energy Corporation 84.64 +11.04 (+15.00%)CRWV CoreWeave, Inc. 136.85 +14.33 (+11.70%)Top losersMENS Jyong Biotech Ltd. 39.38 -10.62 (-21.24%)FLY Firefly Aerospace Inc. 29.32 -7.64 (-20.67%)DOCU DocuSign, Inc. 72.09 -10.05 (-12.24%)KVYO Klaviyo, Inc. 27.67 -3.82 (-12.13%)BRZE Braze, Inc. 28.44 -3.78 (-11.73%)Most activeSNAP Snap Inc. 7.72 -0.68 (-8.10%)NVDA NVIDIA Corporation 186.58 +4.70 (+2.58%)OPEN Opendoor Technologies Inc. 7.97 -0.23 (-2.80%)PFE Pfizer Inc. 25.48 +1.62 (+6.81%)INTC Intel Corporation 33.55 -0.92 (-2.67%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersPFE Pfizer Inc. 25.48 +1.62 (+6.81%)CRWV CoreWeave, Inc. 136.85 +14.33 (+11.70%)LLY Eli Lilly and Company 762.59 +36.08 (+4.97%)DKNG DraftKings Inc. 37.40 -4.90 (-11.59%)NVDA NVIDIA Corporation 186.58 +4.70 (+2.58%)Top economic events