Put Options on M on 8/20/2013

Macy's (M) operates stores and Internet Websites in the United States.

It operates Macy's and Bloomingdale's stores and Websites that sell a range of merchandise, including apparel and accessories for men, women, and children; cosmetics; home furnishings; and other consumer goods in 45 states, the District of Columbia, Guam, and Puerto Rico.

The company also operates Bloomingdale’s Outlet stores that offer a range of apparel and accessories, including women's ready-to-wear, fashion accessories, jewelry, handbags, and intimate apparel, as well as men's, children's, and women's shoes.

The Company reported earnings last week that missed the estimates. Going forward, the company guided lower too. Since then, shares have fallen through a key support level. Lower prices are expected for this stock.

52-Week Trading Range: $36.30 - $50.77

Entry Point:  $45.00

Here is the trade:

Buy One September $45 Put options for less than $1.25

The payoff is shown below.

Trade Buy 1 September $45.00 Put at $1.17 For a net debit of $1.17 Profit/Loss Analysis Breakeven at $43.83 Maximum profit is unbounded Maximum loss is ($117.00) at strike of $45.00 Closing Summary Sold 1 September $45.00 Put at $1.45

Position closed on 8/26/2013 at price of $1.45 with a 23.93% gain in 6 days.

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