How Disney Stock gives U passive income by Selling Put Options on DIS Stock | Best Stocks To Buy Now - YouTube

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if you are wondering what are stocks to buy聽 now i'll be talking about Disney stock.聽聽
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that's right and i'll be showing聽 you how to make passive income聽聽
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through selling put options in the stock聽 market and make money online on disney stock.
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what do you get to discover three things.聽 number one i will be going through with you聽聽
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the fundamentals of disney stock and number two聽 you'll be going through with me on the technical聽聽
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chart analysis to analyze the stock聽 price of disney and number three as聽聽
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the selling put options on think of swim whether聽 it is a good strategy to apply on disney stock.聽
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Appreciate an early thumbs up as it helps聽 to reach out to more people thank you!
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the tickle symbol for disney聽 in the stock market is D I S聽聽
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by the end of this video you'll be confident聽 enough to know whether disney is one of the best stocks聽聽
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to buy now and whether applying selling put聽 options on disney itself is a good strategy聽聽
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stay tuned and let's dive in!
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let's take a look at disney news. it stated聽 that just within one year itself disney has聽聽
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already surpassed 73 million subscribers can you聽 imagine that there is a lot of subscribers just in聽聽
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that year alone and disney + is going to be the聽 main focus of disney as the ceo has announced on聽聽
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the restructuring of the company to focus more on聽 disney + that is very good news because for聽聽
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such a big company with such a strong subscribers聽 i'm sure the next few years disney is going to聽聽
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grow its subscribers to even more than netflix聽 itself. Netflix although it is the, it has the first聽聽
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mover advantage and leading on this on-demand聽 video streaming but let's compare netflix聽聽
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and Disney. although right now netflix is in聽 the league almost about 200 million subscribers聽聽
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but consider the fact that disney just launched聽 the same class for just one year it has almost聽聽
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reached 50 percent of what next place has done and聽 to bear in mind that disney has its own pool of聽聽
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cartoons movies and videos in their聽 bags and they can roll out anytime聽聽
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and those are classic people will subscribe to聽 watch for the adults for the children for kids
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let's go into the fundamentals of disney as聽 you can see from here the earnings per share聽聽
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is quite stable it's good yes there聽 is some deep and especially this year聽聽
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of course for the obvious reason and theme聽 park has always been one of the major聽聽
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revenue contribution to disney and will theme park聽 ever be shut down no it's not possible because聽聽
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Theme Park is the happiest place that even聽 not just children but even adults wants to go
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so i'm pretty positive although theme park聽 will take a bit of time to pick up its sales聽聽
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again that's why it makes sense for the聽 ceo of disney to move into disney+
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and if you look at the free cash flow well聽 it's not bad it's somehow maintained yes聽聽
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there's some drop but consider the fact that聽 the business is quite is pretty disrupted聽聽
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and yet it can maintain at such a high free cash聽 flow which not a lot of companies can do that聽聽
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and looking into the profitability let's say let's聽 let's look at the net margin itself we are not so聽聽
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bad about isn't too digit it's 16聽 it's 21 percent 15 that's a deep聽聽
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that is for sure for this year overall for聽 the past history is considered very good聽聽
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and if we look into the roe the聽 return on equity it is good as well聽聽
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for the past 10 years it has been more than 15聽 less let's not take into consideration this year聽聽
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because it has been disrupted and it does shows聽 the negative that is for sure the question to聽聽
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ask ourselves is is listening going to survive聽 for the next five years if the answer is yes
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it has a good chance for us to聽 take into a second look to invest聽聽
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let's look into the growth聽 of uh disney you can see that
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on the three-year average is about five percent聽 and if we take that as the lowest it's still not聽聽
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so bad and i do believe that disney has a lot聽 of room for growth especially when it focuses聽聽
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on Disney plus because it has all聽 the contents already in their bags
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and all the classic mickey mouse stories聽 and movies they can just launch it anytime
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let's take a look into the financial health聽 of the company and this is one area that i pay聽聽
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a lot of attention to
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as you can see for the past many years it has聽 been below 0.5 which is very good and this year聽聽
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is slightly above which 0.63 is still considered聽 low but to be conservative to be safe i will maybe聽聽
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probably wait until the debt over equity has dropped聽 to 0.5 because before i invest into Disney
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let's go into these technical charts to聽 analyze for disney stocks you can go to聽聽
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tradingview.com and key in the ticker symbol聽 dis and let's take a look wow that's interesting聽聽
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let's try to draw the support or resistance聽 line and it seems to be somewhere around 100 and聽聽
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you can see it has a lot of touch point that's why聽 i choose that as the support line and it's pretty聽聽
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safe to choose that as well because even if the聽 current stock price would drop to below 130 i'll聽聽
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be happy i'll be happy to buy the stocks for this聽 thing such a good bargain such a good discount聽聽
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let's go into the selling put options on聽 thinkorswim let's take a look on this聽聽
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and we are looking at 43 days because there聽 isn't anything else that is attractive so聽聽
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most probably 43 days expiring 聽 date is a good choice and let's go in
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as we have already determined the strike聽 price the saved support line is at 130聽聽
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so let's take a look at this 130 struct聽 price and the premium you'll be getting聽聽
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for selling put options is almost about聽 90 dollars which is not that you see
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you can get ninety dollars just by selling聽 put options okay let's see how we can do it聽聽
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and make sure uh you want to double check聽 when you just want to sell one contract output聽聽
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option make sure it is -1 and the聽 ticker symbol is dis is correct聽聽
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and expiry date this double check is 15 january 21聽 you're selling for for the three days plus it is聽聽
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the put options you can remember to adjust the聽 premium to slightly higher and once everything聽聽
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is done you can just press confirm and send plus聽 don't be afraid to press that because you still聽聽
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get another confirmation to press again and i'll聽 show you how it is minus one means minus one self聽聽
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put contract 100 means because one contract is聽 100 stocks the 15 january is the expiry date聽聽
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the strike price is 130 correct it's a put option聽 sell put options yes and by five that is the聽聽
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premium if all these are correct you聽 can just press send and there it goes聽聽
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you get your premium your passive聽 income immediately in your account
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but please please if you are a beginner please聽 apply to these two rules when you sell a put聽聽
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option first rule is that you promise to聽 buy a promise as a promise and number two聽聽
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is you must have the cash to buy the stocks聽 if ever exercise and make sure you have that聽聽
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so that you can have a good sleep at night
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appreciate your thumbs up and do comment聽 below if you have any comments to me聽聽
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regarding investing or if you want to you want聽 me to go through any stocks that you are thinking聽聽
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of investing i'll be glad to do that and i'll聽 be reading every comment that you made right聽聽
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and finally my friends stay safe and and as well聽 plus please remember to turn on the notification聽聽
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button below subscribe to my channel and you聽 get the latest notification update i'll see you
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you