'Don't be fooled' by Disney right now: Trader

Options Action: The magic of Disney?

According to one trader, Disney's stock isn't looking so magical.

Shares of the media giant jumped 3 percent this week. However, Dan Nathan of RiskReversal.com warns investors that it's still too soon to be bullish on the stock.

Disney is scheduled to report fourth-quarter earnings after the bell on Feb. 9. According to Nathan, a disappointing earnings report could send the stock tumbling.

"Don't be fooled right here," Nathan said Thursday on CNBC's "Fast Money. " "If they have a miss, this thing is going to have an 8-handle on it very quickly. I think it bottoms out probably at $80."

Read More10 stocks that nearly always rise on earnings

A move to $80 would be a 17 percent plunge from where Disney shares traded Friday.

Meanwhile, on Thursday, one options trader closed out a large bearish position on Disney, Nathan noted. And while the stock has found support at $90 over the past year, Nathan said it's broken through another important support level in its multiyear uptrend.

Sign Up for Our Newsletter Options Action

Insight directly from the members of our Options Action panel
Get this delivered to your inbox, and more info about about our products and services.
By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.