As is evident by the DIS chart below, DIS has been in decline since its May 2017 high around $116. The chart reveals a series of steep legs down, followed by partial retracements, followed by more steep legs down. The stock is currently in retracement mode and if the pattern continues, it is getting closer to another leg down.
On August 9th DIS reversed Short and the portfolio bought the Dec $100 Put. Five weeks later, on Sep 13th, those puts were closed out for a 35% gain as the option price hit its trailing profit-taking stop. The trade model has been flat ever since.
Let's re-enter the Dec $100 puts at current levels, around $4.50, with the expectation that DIS will drop toward its Oct 2016 low around $90 in the coming weeks. A move toward $90 makes those puts worth at least $10.00.
The short-term Blue Line Prime service is currently Short TSLA, but even if it is going to $1,000 in the next three years, there will be hiccups along the way. The chart above is a longer-term weekly price chart with a bullish Elliott Wave count that is projecting a $600 price target (not shown). So long as that EW structure is not broken, the $600 price target can only be raised, not lowered.
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