Bullish Options In Play On The Walt Disney Company (DIS) Ahead Of Earnings

Morgan Stanley (NYSE:MS) – Shares in Morgan Stanley (NYSE:MS) are on the rise today, up 2.5% at $23.33 as of 1:10 p.m. ET. Trading traffic in weekly calls on Morgan Stanley (NYSE:MS) are betting the stock extend gains during the next four sessions. The May 10 ’13 $23.5 and $24.5 strike calls attracted the most volume, with more than 2,000 contracts changing hands at each strike during morning trading. Time and sales data suggests traders purchased around 2,100 of the $23.5 strike weekly calls for an average premium of $0.28 per contract, and paid roughly $0.02 apiece for roughly the same number of calls at the higher $24.5 strike. Call buyers stand ready to profit at expiration in the event that Morgan Stanley (NYSE:MS)’s shares rally 1.9% and 5.1% to top average breakeven prices at $23.78 and $24.52, respectively. Buyers of around 1,100 of the May 10 ’13 $23 strike calls on Friday paid an average premium of $0.34 per contract, and today find the value of the options has climbed more than 50% to $0.54 per contract as of the time of this writing.

Caitlin Duffy
Equity Options Analyst

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