Mon, 27 Jul 2009 14:41:12 GMT Three Summer Blockbuster Options Trades By: Houghton and Atkeson Forget about "Transformers: Revenge of the Fallen" or "Harry Potter and the Half Blood Prince," if you want to see the summer's real blockbusters, then you've come to the right place. Options Trade #1: Walt Disney Co. (DIS)The Pixar movie "Up" earned $68.2 million in tickets at North American theaters on its opening weekend, and it became the first film of the summer to hold at No. 1 for two straight weeks at the box office. Would you expect anything less from Pixar? This blockbuster gives us a clue about where Pixar owner Disney's (DIS) stock is headed… up! With its ironclad brand, its lock on children's entertainment, and the fact that DIS is trading at 13 times next year's $1.88 estimate, we believe the stock is poised to be a summer blockbuster. On May 6, DIS reached $26 per share. If the stock is able to break out above this resistance level, we should have a runaway hit on our hands. Buy the DIS Sept 26 Calls (DISIZ). Options Trade #2: Hasbro (HAS)On July 20, Hasbro (HAS) reported better-than-expected earnings, and the stock jumped up about 6%. Part of the reason for the performance was the sale of Star Wars action figures in the wake of the release of "Star Trek XI." As they say, more of a good thing is a good thing. With the release of "GI Joe: Rise of the Cobra" in August, HAS should see another boost to its business. Buy the HAS Oct 27.50 Calls (HASJY). If the stock returns to where it started the year, we could see about 200% appreciation action in these options. Options Trade #3: GameStop (GME)Mike Newell is directing the big-screen version of the "Prince of Persia: The Sands of Time" video game, which could easily be an Indiana Jones-type film. And it certainly should help sales of the underlying video game. The video game is made by independent French company Ubisoft, and is played on Xbox 360 and PlayStation 3. There is no public market way to buy Ubisoft, but we can play gaming retailer GameStop (GME). By the way, GameStop also sells the GI Joe video game. With the summer's blockbuster films promoting the blockbuster games, we recommend buying the GME Oct 24 Calls (GMEJM). Looking for more blockbuster options trades? The trading experts at OptionsZone.com have put together a list of the options trades they think will be the summer's smash hits. Trust us, these are trades you don't want to miss. Related Articles:
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