We’ve opened a new bullish trade on Disney (DIS). Investors may have initially sold Disney off a little from its opening highs on news that its CFO is leaving. In this case, however, it isn’t for bad reasons that James Rasulo is leaving. He will be staying in an advisory role with the CEO, Robert Iger, so we don’t expect the news to be discounted into the stock’s price.

Disney has been up on strong results from recent film releases (despite some softer results from Tomorrowland). Investors are buying back in after the volatility squeeze over the last few weeks.

From our perspective, Disney is breaking out of a triangle consolidation and heading back up to its earning’s highs from earlier this month. Disney is highly correlated with the market, so the “fade” on its earnings day, which was accompanied by very broad selling in the major indices, isn’t much of a warning sign and presents a valid short-term price target. If anything, the growth trends make this an undervalued play with strong technical signals to the upside.

Here’s our recommendation to trade Disney in the short-term:

Buy to open the DIS July 115 Calls (DIS150717C00115000) for a maximum price of $1.15.

InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news. Get in on the next SlingShot Trader trade and get 1 free month today by clicking here.

You can learn more about identifying price patterns — like a bearish head and shoulders top — and using them to project how far you think a stock is going to move in their Advanced Technical Analysis Program.