Put Spread on UPS on 4/23/2013

United Parcel Service, Inc. (UPS) is a package delivery company that operates in the United States less-than-truckload industry, and the provider of global supply chain management solutions. The Company delivers packages each business day for 1.1 million shipping customers to 7.7 million consignees in over 220 countries and territories. During the year ended December 31, 2011, UPS delivered an average of 15.8 million pieces per day worldwide, or a total of 4.01 billion packages. Total revenue in 2011 was $53.1 billion. It serves the global market for logistics services, which include transportation, distribution, forwarding, ground, ocean and air freight, brokerage and financing. It operates in three segments: U.S. Domestic Package, International Package and Supply Chain & Freight. In February 2012, it acquired Kiala S.A. In February 2011, the Company announced the expansion of its UPS Express Freight service into Israel and Slovakia. In December 2011, it acquired Pieffe Group.

Stockwinners is bearish on this name for the following reasons:

1. The stock broke below its 50 day moving average for the first time since Nov 2012
2. Currently, The put/call ratio is .235 and calls tend to be over priced due to levered volatility on the buy side. The price action today is also very weak and bearish.
3. The risk reward of this trade is attractive

Note:UPS is announcing it's earning report on Thursday before market open.

Trade Buy 1 May $82.50 Put at $1.15 Sell 1 May $80.00 Put at $0.50 For a net debit of $0.65 Profit/Loss Analysis Breakeven at $81.85 Maximum profit is $185.00 at strike of $80.00 Maximum loss is ($65.00) at strike of $83.00 Closing Summary Sold 1 May $82.50 Put at $0.00 Bought 1 May $80.00 Put at $0.00

Position closed on 5/17/2013 at price of $0.00 with a -100.00% loss in 24 days.

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