Disney (DIS) will report second quarter earnings this afternoon and a conference call is scheduled for 4:30pm ET.

Capital IQ consensus calls for EPS of $1.70 (versus $1.50 last year) on revenue of $14.1 billion (+5.8% YoY).

Ad revenue at ESPN was down 11% in the quarter, reflecting a decrease in impressions and lower rates, which were adversely impacted by the timing of the College Football Playoff games.

AS a result, ESPN launched streaming service ESPN Plus in April for $4.99/month. ESPN was a little late to the streming game -- any update oin subs would be important but not expected this early. Disney is also launching an OTT Disney brand streaming service next year to compete with the likes of NFLX.

DIS will acquire Sky and a controlling stake in Hulu if the deal goes through. 



Based on the weekly DIS May11 $101 straddle, the options market is currently pricing in a move of ~4% in either direction by weekly expiration (Friday).

On a positive report, look for resistance near the $105 mark, while support sits near the $98.00 level.