It’s safe to say that a single $15,000 payout would be ideal for you right now, but beneath Disney’s pile of rubble, I’ve found two $15,000 payouts you can take advantage of.
If you’re not sure what I mean by Disney’s rubble, then you clearly haven’t heard about the company’s latest plan to pull all its movies off Netflix.
Investors are torn about this move, but there’s some very telling signs that point to which way this one’s gonna go, and these two $15,000 payouts are yours for the taking…
In Disney’s (DIS) latest earnings report, CEO Bob Igor stated his plans to have all Disney movies pulled from Netflix (NFLX).
This includes all Disney, Pixar, and, most likely, any Star Wars films.
The CEO has a vision for the future of Disney’s movies, and it seems to be a solitary road.
He announced plans to create a standalone Disney streaming service, which would compete with the likes of Netflix, Hulu, and Amazon Video—along with an ESPN streaming service that’s pegged to launch within the next year.
The problem this brings is that Disney is isolating itself from all its licensing deals.
Disney and Netflix initially went into business together in late 2012, when Netflix struck a deal to exclusively stream Disney’s movies.
When this deal was penned, Disney stock was worth $45 per share and Netflix stock was worth a mere $12 per share. Since then, each company’s stock has grown by 2x and 14x, respectively.
Netflix stock doubled its price in the month after this deal was made, and it seemed to light a fuse that just wouldn’t go out.
But it seems that fuse might be burning through its final embers.
And that’s exactly why you’re not only being offered one $15,000 payout, but we’re going to profit off these companies bringing each other down.
In order to expose yourself to these parallel payouts, I’ll need to give you a quick lesson on short selling.
You probably see the term “short selling” thrown around a lot, but don’t let it intimidate you.
Short selling is the same as buying, but in reverse. You’re simply betting the price of a stock will go down, and the order is executed in almost exactly the same fashion with your broker.
You’d simply say, “Sell to open 100 shares of XYZ.”
So, if you were to short sell 100 shares of Disney and 50 shares of Netflix at the perfect time, and each stock returned to the prices they were valued at before they struck their 2012 deal, you’d be taking parallel $15,000 payouts.
Stocks fall much quicker than they rise, and if all plays out according to plan, the stock market will take care of the rest.
You’ll see that each stock lost quite a bit after this news was published—Disney lost 6% overnight and Netflix lost 5%—and that was simply from the news alone.
Nothing concrete has actually happened yet, but when it does, it could be catastrophic for each of the television giants…
