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Disney closes at lowest in practically 9 years as traders flip bearish By Reuters

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(Reuters) -Shares of Walt Disney (NYSE:) fell 3.9% on Thursday, closing at their lowest stage in practically 9 years, with some traders betting {that a} additional value drop is on the playing cards within the subsequent few months.

Disney stockholders are scrutinizing the corporate’s turnaround plan after chief Bob Iger earlier this month promised a mixture of value hikes throughout its streaming properties, extra adverts and value cuts to elevate the enterprise.

On Thursday, Disney choices had been busier than common with some 321,000 contracts traded, or 1.4 instances the typical each day quantity, in response to information from choices analytics agency Commerce Alert.

Buying and selling sentiment leaned towards bearish bets with put choices that will guard in opposition to the inventory slipping beneath 80 by mid-September and mid-October, and had been among the many most actively traded contracts.

Put choices convey the best to promote shares at a hard and fast value sooner or later. Disney’s inventory was additionally dragged by weak point within the broader market as traders turned cautious forward of U.S. Federal Reserve Chair Jerome Powell’s speech later this week.

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In Disney’s earnings report on Aug. 9, Iger acknowledged the leisure firm faces a “difficult setting” within the near-term and the corporate’s shares have dropped over 5% for the reason that time.

Disney’s inventory closed at $82.47, its lowest since October 16, 2014.

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