Earnings reaction in Walt Disney

Let’s look at a Daily chart first:

DIS_C

A Doji for $DIS has formed under the Rising 50 SMA but above the Breakout back-test level (defined by the horizontal Black line).

Now for some perspective – a Weekly chart:

DIS_weekly

Up trend remains in tact so likely an opportunistic Buy entry here for traders who have been waiting on a pullback.

 

Disclosure: I traded the stock in after hours on 8/4 but have switched to an August 28w 111/116/110 Risk Reversal Call Spread today for a post-Earnings trade.

– DM 9:10 AM CST

Risk Reversal Call Spread (RRCS)

I often receive inquiries on what a RRCS is so I thought I would use a current position in $PCLN to illustrate what it is. The acronym of RRCSĀ stands for:

Risk Reversal Call Spread

The typical structure for thisĀ trade:

  • Long a Call Spread
  • Short Puts

Here is what I have for $PCLN in the submarine basket:

PCLN_F_2

– DM 1:00 PM CST