Traders buy protection ahead of Disney earnings

With Disney (NYSE: DIS) scheduled to report earnings after the bell on Tuesday, some options traders seem to be bracing for bad news.

The options market is implying a 5.5 percent one-day move off of earnings, higher than the average move of 4.75 percent over the last four quarters. For the last 10 quarters, Disney shares have moved an average of 3.3 percent in one day.

In the most notable trade on Monday, one trader bought 1,000 of the Feb. 12 weekly 91.50-strike puts for $3.22, which breaks even if Disney shares fall below $86.78 by Friday.

"This trader is probably looking for a little protection on a long position into a potentially volatile day," Dan Nathan of RiskReversal.com said Monday on CNBC's " Fast Money ."

Read More The market is broken: Technician

The media giant's stock is down 13 percent year to date. Now, the stock is approaching a critical level of $90, points out Nathan. He says this level has acted as support over the past year.

However, the stock has already broken below a multiyear uptrend, he said, which may be an alarming sign for investors.

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