Discovery (DISCA) Offering Possible 12.36% Return Over the Next 20 Calendar Days

Discovery's most recent trend suggests a bullish bias. One trading opportunity on Discovery is a Bull Put Spread using a strike $22.50 short put and a strike $17.50 long put offers a potential 12.36% return on risk over the next 20 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $22.50 by expiration. The full premium credit of $0.55 would be kept by the premium seller. The risk of $4.45 would be incurred if the stock dropped below the $17.50 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Discovery is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Discovery is bullish.

The RSI indicator is at 68.99 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Discovery

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Discovery To Go Direct To Consumers With Streaming Service
Thu, 20 Aug 2020 18:52:14 +0000
Discovery, Inc. (NASDAQ: DISCA) is one of the largest media companies in the U.S. and among the largest in the world.The company has stated recently it doesn't get the valuation from cable companies it thinks it deserves.This could be why Discovery has been pushing toward building a direct-to-consumer streaming platform that will launch soon, according to a Deadline report. What to Know: Discovery is the owner of hit brands like Discovery, HGTV, Food Network, TLC, Investigation Discovery, Travel Channel, MotorTrend, Animal Planet and Science Channel.The company also has the joint venture OWN — Oprah Winfrey Network — and will launch a joint venture with Chip and Joanna Gaines, Magnolia Network. The company is the No. 1 global media company outside the United States.On its Aug. 5 second quarter earnings call, Discovery CEO David Zaslav used an automotive metaphor to compare his company to the "SUV of brands" versus "sports cars" like Netflix, Inc. (NASDAQ: NFLX), Amazon.com, Inc. (NASDAQ: AMZN) and The Walt Disney Company (NYSE: DIS).Rivals have laid the groundwork, and Discovery will be successful thanks to its impressive stable of brands, the CEO said. Why It's Important: TLC ratings hit an all-time high in the second quarter.This network, along with HGTV and Food Network, continue to be dominant in key women-targeted demographics.The company has a 20% market share for women watching prime time television. In the second quarter, Discovery owned four of the top 10 pay television channels in primetime with TLC, HGTV, Discovery and Food Network.With many strong brands, Discovery has the content to power its own streaming service.The company has yet to go into specifics on whether the streaming service will be free and ad-supported or subscription-based.A question about the inclusion of Magnolia Network also wasn't answered on the earnings call. Discovery said it renewed four contracts during the second quarter for distribution. This are: Charter Communications (NASDAQ: CHTR), Cox, and Comcast Corporation (NASDAQ: CMCSA) in the United States, and Sky in the United Kingdom.Despite strong live viewership, the company still believes it is undervalued versus peers when it comes to carriage deals. Discovery believes it can increase rates as renewals come up, but is counting instead on other areas for revenue growth.Shares of Discovery are down 33% in 2020. The company, like many media companies, has been hurt by not being able to air all of its live programming, and the advertising market has weakened due to budget cuts.Internationally, the company missed out on airing the 2020 Summer Olympics, for which it has the European broadcast rights. What's Next: Along with going direct to consumers with a new streaming service, Discovery is betting more heavily on advertising revenue.The company launched OneGraph, a unified advertising platform for audiences across linear and digital platforms. The new platform uses proprietary data and harnesses the power of Discovery's large market share in certain demographics. The platform can break down data across 50 main audience segments.Discovery is playing to its strengths here, with a heavier focus on controlling the advertising market it can directly control. See more from Benzinga * Mid-Afternoon Market Update: Nasdaq Rises 100 Points; Opera Shares Plunge Following Q2 Results * Google Filing With FCC Hints At New Project * Nvidia Q2 Roundup: Analysts See 'Only Perpetual Growth Story In Semis,' Premium Valuation(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Golf Digest, Discovery And Tiger Woods Unveil Season 2 Of The Exclusive Series "MY GAME: TIGER WOODS"
Mon, 17 Aug 2020 15:05:00 +0000
Golf Digest and Discovery Golf today announced the release of the second season of the exclusive masterclass series "MY GAME: TIGER WOODS." The 10-part season launches globally on August 20 and sees the greatest player of the modern era take viewers through his Shotmaking Secrets for the first time.

TV Verticals Leaving Independents Like Discovery, AMC Networks Out in the Cold
Mon, 17 Aug 2020 15:00:09 +0000
Smaller, less-mainstream video content creators are finding the cable industry just doesn't need them like it used to.

'Congress extending SNAP' would help to combat childhood hunger: Discovery executive
Fri, 14 Aug 2020 19:43:28 +0000
Discovery, Kellogg's and No Kid Hungry team up to combat one of the fastest growing issues in the United States — childhood hunger.

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