DISNEY marvel star wars etc...Stock Now is the time to buy!

Jun 30, 2005
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outsiddah Boston
#1
I NEVER do this but wtf I will try to help a bagger out...Presently you can get the Jan 2019 DIS $105 calls for less than $600...

These things will be trading around $1000+ in december when star wars is coming out.
I own disney stock at a great +++ right now from some great buys and I am always tracking it for new opportunities to increase my holdings. I've bought calls today to secure $$$.. Basically if disney goes over $105 in the next year I'll get a tidy $$$..


Even if you don't want to go the call route, straight up stock purchases at sub $100 are great right now. There has been a lot of fear for the whole ESPN issues with viewers etc but I think that's over rated. Disney marvel/star wars is cranking in the dough and JJ abrahms just signed on...


I am going to regret putting this in writing...

 

ruckstande

Posts mostly from the shitter.
Apr 2, 2005
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#2
I wish I knew what you were talking about. I like money.
 

LiddyRules

I'm Gonna Be The Bestest Pilot In The Whole Galaxy
Jun 1, 2005
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#6
Jun 30, 2005
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outsiddah Boston
#7
I wish I knew what you were talking about. I like money.
http://www.dummies.com/personal-fin...gies/trading-options-for-dummies-cheat-sheet/

I bought the rights or "Option" to purchase 100 shares of disney at $105 a share anytime before the 3rd week of Jan 2019. For thisi paid (including fees $597 per contract). So if Disney goes to $110 a share I hold the right to buy 100 shares at $105 so that makes the intrinsic value $500. I paid $597 so I would lose $97. But options also have a time value so the longer the call (this one is over 15 months) the more opportunity it has to go up in value so the more money it's worth. The time value could be $300 so you have $500 intrinsic and $300 time for a total value of $800 and a $200 profit.
The cool thing about options is you don't have to buy 100 shares of stock to close the contract. (You'd need $105x100 shares or $10500). You can just sell the contract to someone else at it's value.
 
Jun 30, 2005
10,879
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outsiddah Boston
#9
Just a little FYI here...Disney just broke $110 today and these contracts are now worth $1,294+ each...
$597 $1,294.00 +$696.35 +116.51%
 

SOS

Is alive.
Wackbag Staff
Aug 14, 2000
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#10
Just a little FYI here...Disney just broke $110 today and these contracts are now worth $1,294+ each...
$597 $1,294.00 +$696.35 +116.51%
I guess Star Wars + Marvel >> ESPN?
 
Jun 30, 2005
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outsiddah Boston
#12
I guess Star Wars + Marvel >> ESPN?
The are also looking to acquire 21 century fox, which I believe has a 60% stake in Hulu which would immediately give Disney control over an established streaming platform. Disney is trying to roll out it's own streaming service and HULU would save them tons of work and marketing...

So this isn't even a Star Wars bump yet...
 

Atomic Fireball

Well-Known Member
Donator
Jul 26, 2005
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#14
The folks who revived Disney since the 80s have done a terrific job. Eisner, Katzenberg, Ovitz, Iger. I think maybe the run is over but I don't know shit.
 
Jun 30, 2005
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outsiddah Boston
#18
...aaand there you go...Disney acquires 21 Century fox, has the ins for a streaming platform, snags FX, Fox Sports, UFC broadcasts, Movie Library and just gets an even scarier hold on the eyes and ears of the consumer...and as a stock holder I smile...$120 by this time next year...greedy fingers crossed...
 

SOS

Is alive.
Wackbag Staff
Aug 14, 2000
48,448
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#19
X-Men, Fantastic Four & Deadpool Officially Join the Marvel Cinematic Universe.

I am interested in what happens to The Wolverine.
 
Jun 30, 2005
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outsiddah Boston
#21
bump.. DIS hits a 2.5 year high today breaking $116 before earnings tomorrow...ride the lightning? BTW if you were still holding them, over $800 profit per call...and you can sell today or hold out for $120....and $1K per call profit with no short term capital gains tax..
 
Jun 30, 2005
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outsiddah Boston
#23
So here is an update on this...I closed out my final options today for $1,120, Profit per contract, a 90% profit on my initial purchase price and because they were held for more than a year, I have no short term capital gains taxes, just long term...

Hope everyone played along and also made some $$ :)
 

ruckstande

Posts mostly from the shitter.
Apr 2, 2005
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#24
So here is an update on this...I closed out my final options today for $1,120, Profit per contract, a 90% profit on my initial purchase price and because they were held for more than a year, I have no short term capital gains taxes, just long term...

Hope everyone played along and also made some $$ :)
I don't understand this shit. Never did. I owned 3 stocks ever. One made a nice chunk of change, paid for my wife's engagement ring. The second went from $.10 to $.0001 and this other one I still have I bought at $.09 and it shot up to almost $2.00 and now it's back below $1.00. I don't know what I'm doing.
 
Jun 30, 2005
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outsiddah Boston
#25
I don't understand this shit. Never did. I owned 3 stocks ever. One made a nice chunk of change, paid for my wife's engagement ring. The second went from $.10 to $.0001 and this other one I still have I bought at $.09 and it shot up to almost $2.00 and now it's back below $1.00. I don't know what I'm doing.
First buy low, sell high...
Options are just that, and option to buy...A call option is the right to buy stock X on a specific date at a specific price. Someone who owns stock X says "I will sell you 100 shares of stock X on a specific date for a specific price for a premium right now" this is the STRIKE price...They are a way to make money of stock price changes without having to buy huge amounts of shares for big $$$
So for this instance someone sold me the the right to buy shares of disney off them for $105 a share on Jan 19, 2019. That is what 1 contract is. A contract always covers 100 shares of the stock. So if you have 5 contracts it is 500 shares...So in the case of a Call option the owner of the stock says "I think the stock will be worth less than $105 in Jan of 2019 so I would be happy to sell the rights to buy my shares at $105 on that date"

So in Sept of 2017 I buy the right to buy shares off this person for $590 per contract...I believe that the stock will be more than $105 or will rise above $105 at some point...So each contract (the right to buy 100 shares per contract) was purchased for $590. Since each contract is 100 shares that's 590/100 or $5.90 per share of cost. So the person that owns the stock has immediately made $5.90 a share off the stock by selling the contract. Disney was trading at $98 a share when I bought the contract so the seller gets to offload their shares at $105 a share PLUS the premium they sold the contract for, $5.90 a share, so if the stock is $105 or greater when the contract matures They will have locked in the $7 per share for the $98 to $105 and then the $5.90 for the contract so they get essentially $110.90 for the shares on Jan of 2019 reguardless of how high the stock price is on that date...So if the stock goes to $120 they still only get $105 for their shares on that date...

This is how you make money. You purchase the rigth to buy the shares at $105 and then the stock goes up to $110. That means that you now have a contract that is worth the initial value PLUS the increased value from being "In the money" meaning the stock is now worth more than the contract strike price. So the contracts go up at least $5 per share or $500 for the 100 shares plus the time value (The further away the expiration date the more time value a contract has)

So disney is trading at $114 today and i have the rights to shares at $105...that's a $9 bonus or $900. I could exercise the contract and take 100 shares from the person that sold the contract for $105 a share but that means I need $10,500 cash to close the contract...Since I don't have $10,500 sitting around I could just sell the contract to someone who does have the $10,500...And that person bought the contract off me for $1,200...So I make money and they have the contract now...

Why would you sell one of these contracts? Maybe you believe the stock will go down or be below $105 on Jan of 2019. If that were to happen you get the $590 cash for selling the contract and then when Jan 2019 comes the contract expires without being exercised (nobody takes your shares because the stock is worth less than $105 so it's silly to buy them via contract for $105 when you can buy them outright for $104 or less...) So if it says below the strike price at expiration you pocket the cash...

Now let's say you sold a contract and decide later you don't want to lose your shares...you can BUY a contract from someone else to close your open contract...and then you won't lose your shares...

It works 4 ways....BUY to open, BUY to close, SELL to open, SELL to close...

So I bought to OPEN and Sold to close...and made $$$