Author argues Disney is mispriced and is long 2027 calls expecting a rerating driven by streaming profits, resilient parks, valuation, and ESPN.
Unpriced research observations (excluded from Calls and Returns):
DIS — LONG Author argues Disney is mispriced in the mid-teens forward earnings for its IP and parks. Streaming has become profitable and parks continue to generate strong margins despite price increases. ESPN plus DTC bundling is an additional lever that could drive a rerating, and the author uses 2027 LEAPS as a leveraged expression of this underlying Disney rerating thesis, with returns dependent on DIS share-price appreciation. The stated risk is that DIS may still trade around 110 in two years, in which case the position loses. ambiguous_option_contract
I’m long 2027 LEAPS because time is literally the edge here. Either Disney keeps doing what it’s already doing and rerates, or it doesn’t and I eat the loss.