Shares of Walt Disney have had a great year, rising more than 13 percent in 2015 and far outpacing the market as a whole. But for one options trader, the run must have felt especially magical.
In June, a trader bought 50,000 of the April 100-strike calls in Disney for about $1.70 each. With each options contract controlling 100 shares, this represented an $8.5 million bet that Disney shares would rise above $101.75 by April. Given that shares were trading below $85 at the time, that must have seemed like a quite a long shot.
Fast-forward to the trade's expiration day, Friday. Despite falling on a tough day for the market, the stock still logged an advance of 25 percent over that time. And that left the option trader is a very strong position.