Disney hit new highs this morning along with upside option activity, after getting a significant upgrade from Bank of America with a targeted price not seen in a decade.
DIS stock reached a new 52-week high of $32.86 half an hour into the session before pulling back to $32.54, still up 2.84 percent on the day. The stock popped after BofA / Merrill Lynch boosted the name to "buy" from "neutral" and raised its price target more than 27 percent to $42, a level last reached in May 2000.
The option activity is concentrated at the March 33 calls, where 3,833 have traded against open interest of 1,839 contracts. Of these calls, the largest block was 2,152 for $0.36, according to OptionMonster's real-time tracking systems.
The average call volume at the strike has been just 104 per day for the last month. Overall calls in the name have outnumbered puts by nearly 3 to 1 so far today.
Disney's stock would need to rise roughly 2.5 percent by expiration at the end of next week for the calls purchased today to make a profit.
The company is scheduled to release its next earnings report on May 11.
Options Trading School:
Disney Competes With:
General Electric/NBC Universal*
*General Electric is the parent company of CNBC.
Mike Yamamoto is an analyst and writer for OptionMonster.