Disney (DIS) Offering Possible 21.36% Return Over the Next 3 Calendar Days

Disney's most recent trend suggests a bearish bias. One trading opportunity on Disney is a Bear Call Spread using a strike $182.50 short call and a strike $187.50 long call offers a potential 21.36% return on risk over the next 3 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $182.50 by expiration. The full premium credit of $0.88 would be kept by the premium seller. The risk of $4.12 would be incurred if the stock rose above the $187.50 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Disney is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Disney is bearish.

The RSI indicator is at 61.84 level which suggests that the stock is neither overbought nor oversold at this time.

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LATEST NEWS for Disney

Warner Bros. Guarantees Filmmakers a Payday for HBO Max Movies
Sat, 09 Jan 2021 22:36:52 +0000
(Bloomberg) — Warner Bros. has come up with a new plan to compensate filmmakers during the pandemic: treat every movie like a box-office smash.After shocking Hollywood with its decision to release all its new movies this year on HBO Max, the studio has adjusted terms of its deals with partners to guarantee payment regardless of box-office sales and to increase the odds of performance-based bonuses. Warner Bros will also pay a larger group of cast and crew money based on fees it collects from HBO Max, according to people with knowledge of the studio’s plans.The company is close to resolving disputes with many parties, said the people, who asked not to be identified because the discussions are private. Details of some accords have already begun to surface, with the Hollywood Reporter saying this week that Warner Bros. is close to a deal with Legendary Entertainment over the movie “Godzilla vs. Kong.”The agreements are a sign of the pandemic-troubled times. Most theaters are closed because of the coronavirus, motivating studios to put their films online. But their payment contracts with partners are usually highly dependent on big-screen success — a system that many in Hollywood want to protect, because it made them rich.Warner Bros. plans to release 17 movies in 2021, including “Dune,” “In the Heights,” and sequels to “The Matrix” and “Space Jam.” The movies will appear in theaters and on HBO Max at the same time — though they’ll run exclusively on the big screen in many territories around the world. The films will play on HBO Max for 31 days, but may remain in theaters long after.Here’s how it will work, according to the people familiar with the situation: When movies come out this year, anyone entitled to a bonus will receive one at half the box-office revenue that would normally be needed to trigger a payout. And if more theaters close down, the threshold will fall further — a stipulation called the “Covid-19 multiplier.” Those who would normally participate in profits from box-office receipts will continue to do so, as well as benefit from on-demand and online sales.HBO Max will pay Warner Bros. a fee for its 31-day window, and the money from that will be shared with not just profit participants, but cast and crew. Both businesses are part of AT&T Inc.’s WarnerMedia, run by streaming veteran Jason Kilar.“HBO Max is paying a considerable fee for the ability to exhibit these films,” Kilar said in an interview last month.AT&T, which acquired the Warner operations in an $85 billion acquisition in 2018, has a lot riding on the strategy. In addition to helping it cope with the pandemic, the hope is to draw millions of subscribers to HBO Max, which launched last year. The telecom giant is counting on the platform to become a full-fledged competitor to Netflix Inc. and Disney+.Directors’ ComplaintsWhat’s not clear is whether extra cash is enough to ease tension between the studio and well-known filmmakers and financiers who immediately cried foul over Warner Bros.’ decision. “Tenet” director Christopher Nolan slammed the idea of shunting films to HBO Max, which he called “the worst streaming service.” Denis Villeneuve, whose movie “Dune” was affected by the move, lambasted Warner Bros. and AT&T in a column for the industry trade publication Variety.“AT&T has hijacked one of the most respectable and important studios in film history,” he said. “There is absolutely no love for cinema, nor for the audience here.”Talent agencies also have complained, with Endeavor Executive Chairman Patrick Whitesell saying it was an attempt by Warner Bros. to self-deal. Richard Lovett, president of the CAA agency, said the move was “entirely unacceptable” to his firm and its clients.“You unilaterally determined a value for our clients and their work to benefit the long-term prospects of HBO Max and the finances of AT&T, a choice that our clients did not make,” he said in a letter to WarnerMedia cited by Variety.Many of the parties were upset because they felt Warner Bros. didn’t give them enough of a heads-up, or because they wanted their movies to appear exclusively in theaters. But the rebuke was also a carefully orchestrated part of a negotiation: Many were worried about the potential impact on pay.And while releasing movies on the internet isn’t new — Netflix Inc. and Amazon.com Inc. put out dozens of features every year — filmmakers often pick traditional studios because they want their films to appear in theaters first, and because the potential upside of a big theatrical smash far exceeds the money from a streaming hit. On big movies like “Wonder Woman,” this can be tens of millions of dollars. Robert Downey Jr. made a reported $75 million for “Avengers: Endgame” between his salary and share of profits.Spelling It OutWarner Bros. has spent the past few weeks speaking to its partners, like LeBron James’s SpringHill Entertainment and director Jon Chu, to further explain its strategy, and lay out the argument that they will make more money this way. Though Warner Bros. believed it had the rights to release its movies to HBO Max without the consent of its partners, it has since adjusted their contracts to offer more favorable terms.The movie industry is always a risky endeavor. Even without a pandemic, most films typically lose money. So guaranteeing at least some kind of payday is novel — even if it’s not what people might make if the theater business was healthy. Not all of Warner Bros.’ partners are upset with the HBO Max arrangement, but the studio wants to keep its talent happy — especially when it’s time to promote the movies coming out this year — and maintain loyalty for future projects.The extra payouts aren’t permanent. After 2021, the studio plans to go back to the old contract model. That raises another risk, in which partners grow accustomed to higher, guaranteed payments that the studio can’t sustain. To cover the extra costs, Warner is reallocating money from some productions that were shut down this year.Sharing the HBO Max license fee with crew members and writers is another temporary change. Crew members typically don’t share in box-office receipts, but do get a piece of home-entertainment sales.“Our orientation in these situations is always to be generous,” Kilar said in last month’s interview.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

3 Timeless Stock Investing Lessons to Beat the Market in 2021
Sat, 09 Jan 2021 14:17:00 +0000
Timeless lesson: Regular people can beat the market by investing in businesses they understand better than Wall Street. Written in 1989, the examples in One Up on Wall Street are outdated, but their sentiment is still applicable today. Lynch simplifies the stock market and reminds investors that stocks are companies with real businesses.

Activists Are Primed for Action in 2021
Fri, 08 Jan 2021 22:48:00 +0000
The average activist hedge fund crushed conventional hedge funds in 2020, and players like Bill Ackman and Daniel Loeb entered the new year with hefty arsenals.

‘It has been a learning curve for all of us’: Actor Anthony Anderson on filming during COVID-19
Fri, 08 Jan 2021 22:29:36 +0000
Actor Anthony Anderson joined Yahoo Finance Live to discuss his partnership with Northwestern Mutual, tips for financial planning in 2021, and his experience filming during COVID-19.

After A Bearish Prediction Last May, Analyst Admits He Was Wrong About Disney
Fri, 08 Jan 2021 21:11:23 +0000
Lightshed Partners' Rich Greenfield acknowledged Friday that “we were wrong” in downgrading Walt Disney Co. (NYSE: DIS) in May. He upgraded Disney's stock from Sell to Neutral.The Thesis: Simply put, a shift towards a bearish stance on Disney's stock in May “has been dead wrong,” Greenfield wrote in a report.The thesis was based on how the market was under-appreciating the impact of the COVID-19 pandemic on Disney's 2020-2021 earnings. But shortly after the downgrade, Disney investors and the market started to look past COVID towards a more normalized world.”Even 25 years into our analyst career, the market is still teaching us new lessons,” he wrote. Disney's stock traded around the $115 area last May.The analyst's prior bearish thesis was also based on the notion that the appointment of Bob Chapek as CEO was a mistake. But the new CEO “impressed us so far” by focusing on streaming video at the expense of legacy assets and earnings.4 Things To Watch: Disney is well-positioned to “grow stronger” in the coming months amid four catalysts, BofA Securities' Jessica Reif Ehrlich wrote in a note: 1. A more widespread launch of Disney+ in Japan and price increases in other regions. 2. Re-openings and capacity increases at theme parks. 3. Resumption of film and TV releases. 4. Synergies stemming from the 21st Century Fox acquisition of certain assets.Ehrlich maintains at Buy with a $192 price targetDIS Price Action: Shares of Disney closed Friday at $178.69.Latest Ratings for DIS DateFirmActionFromTo Dec 2020Wells FargoMaintainsOverweight Dec 2020BMO CapitalDowngradesOutperformMarket Perform Dec 2020Credit SuisseMaintainsOutperform View More Analyst Ratings for DIS View the Latest Analyst RatingsSee more from Benzinga * Click here for options trades from Benzinga * Roku Hits 50M Active Account Milestone; CEO Talks Competition, Strategy(C) 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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