Disney is up 2.41% today when the S&P is up just 10 points. I expect DIS to begin trading higher into their earnings in August. The parks and movie business is bound to be horrid but investors know that.

We are initiating a half position at this price level. This is a very long term trade and I don't wait to miss a potential move ahead of their earnings early next month.

The general market is looking frothy and tired at these levels so that gives me some pause, but as I mentioned in this morning's letter - buying DIS at the price level it was trading at around April of 2019 when nothing was known of their streaming service is a great opportunity longer term.

I see this position as a longer term trade that could take as long as 2-3 years to play out. Be aware that if you take this trade and need to close it out in the next 3-6 months, that it very possibly could be a loser in that time frame. There could be substantial volatility in Disney if COVID-19 takes longer to overcome than we anticipate, which is a real risk.

I expect Disney will be one of our core long-term positions for at least the next 24-36 months. Once COVID-19 is past us and parks get to re-open at 100%, and films start getting produced again, and movie theaters open up, all the focus will be on their Disney+ streaming service with probably 100+ million subscribers by then.

Initiate a half position in DIS - we will look to add to this position over the next 8-12 weeks. I will be giving Disney some space to the downside in this trade as I don't want to get stopped out in the short term volatility that is possible. The Stop for now will be $98.45.

I am also looking at shorter term options trades in Disney around earnings, so that will be possible as well later this month.