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{"id":22311,"date":"2023-07-18T16:44:52","date_gmt":"2023-07-18T16:44:52","guid":{"rendered":"https:\/\/businessecon.org\/?p=22311"},"modified":"2023-08-16T08:44:39","modified_gmt":"2023-08-16T08:44:39","slug":"the-walt-disney-company-sold-put-options","status":"publish","type":"post","link":"https:\/\/valueinvestingnow.com\/2023\/07\/the-walt-disney-company-sold-put-options","title":{"rendered":"The Walt Disney Company \u2013 Sold PUT Options"},"content":{"rendered":"

The Walt Disney Company – Sold PUT Options<\/span><\/strong><\/span><\/h1>\n

Today, July 18, 2023, the Value Investment Fund sold a PUT Option for 300 Shares of The Walt Disney Company<\/strong><\/span><\/a> with a strike price of $85.00 and an expiration date of\u00a0 June 21, 2024. Total gross receipts equals $2,160. The Fund assesses a $1 per share transaction fee to cover the operating costs of the Fund. Thus, the net earnings from the sale of these PUT option equals $1,860.00<\/span><\/p>\n

\"The<\/span><\/p>\n

The facilitator of the Fund has determined the intrinsic value<\/strong> <\/span><\/a>of The Walt Disney Company is approximately $108. Thus, ownership of The Walt Disney Company at $85 a share is a 27% discount from the intrinsic value. Furthermore, the sale of the puts earns the Fund a net value of $6.20 per share. Thus, the net purchase price is $78.80 and this is a 34% discount against intrinsic value.<\/span><\/p>\n

The Walt Disney Company<\/span><\/strong><\/span><\/h2>\n

The best time to sell PUTs is when a company’s stock price is highly depressed. This is The Walt Disney Company’s five year look back at the market price:<\/span><\/p>\n

\"The<\/span><\/p>\n

There a several contributing factors causing this market price dip for The Walt Disney Company. The company is experiencing some turmoil in senior management as Bob Igor has come back a few months ago, park attendance is down and there is a legal battle with Florida via the governor. The reality is that The Walt Disney Company is a massive conglomerate with annual revenues exceeding $90 Billion. It continues to earn profits and it is just a matter of time before the market price returns to a price greater than $140 per share. Act on Knowledge.<\/strong><\/span><\/p>\n