Disney stock price has been all over the place since we entered the original and trade and because of earnings and a CEO change. It looks like it has settled into a new range. We are working down a 0.30 debit on the trade.
Let’s close the current iron butterfly and reset it.
Disney (DIS): 97.77
TRADE ACTION 1: CLOSE the DIS 2 Dec 80/85 puts and the DIS 2 Dec 85/90 calls iron butterfly for a net debit of around 4.95-5.00
BTC the DIS 2 Dec 85 puts
STC the DIS 2 Dec 80 puts
BTC the DIS 2 Dec 85 calls
STC the DIS 2 Dec 90 calls
Do not pay more than 5.00 for this trade, that is the intrinsic value of the spread now.
TRADE ACTION 2: OPEN the DIS 23 Dec 92/97 puts and the DIS 2 Dec 97/102 calls iron butterfly for a net credit of around 3.65-3.75
STO the DIS 23 Dec 97 puts
BTO the DIS 23 Dec 92 puts
STO the DIS 23 Dec 97 calls
BTO the DIS 23 Dec 102 calls