We are selling half of our Walt Disney Co. (NYSE: DIS) call options for a gain of 67% in just over 2 months. These are our January 2010 DIS $30 call options that we had purchased at a premium of $150 per contract. We are selling half of our portions to manage risk here. On one hand the Disney stock price has been on a bit of a roll lately. On the other hand, we are getting close to the call options expiration and do not want to carry too much risk coming close to that date.
Disney has been in the news lately with their Marvel acquisition among other positive signs. We still think that the stock has legs. It is hovering at around its 52-week at this time and has gone up over 20% in the last 3 months. It has a forward P/E of under 15 which makes it an attractive buy. We will be revisiting Disney for future trades.
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