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Call Spread on ARMH on 9/23/2013

Bullish Flag on ARMHARM Holdings plc (ARMH) engages in the design of microprocessors, physical intellectual property (IP), and related technology and software. Its processors power most of Apple's devices.

It also sells development tools that enhance the performance of embedded applications. The company operates in three segments: the Processor Division, the Physical IP Division, and the System Design Division. Its products include microprocessors cores that consist of specific functions, such as graphics IP, fabric IP, embedded software IP, and configurable digital signal processing IP; physical IP components for the design and manufacture of integrated circuits, which comprise embedded memory, standard cell, and input/output components; and software development tools that assist software design engineers in the design and deployment of code, from applications running on open operating systems to low-level firmware. The company also offers support, maintenance, and training services, as well as design consulting services.

ARM Holdings plc licenses and sells its technology and products to electronics companies, which in turn manufacture, market, and sell microprocessors, application-specific integrated circuits, microcontrollers, and application-specific standard processors to systems companies for incorporation into various end products, as well as licenses and sells development tools directly to systems companies and provides support services to licensees, systems companies, and other systems designers. It operates in Europe, the United States, and the Asia Pacific. 

Shares have performed a bullish "flag" and higher share prices are expected for this stock.

52-Week Trading Range:  $27.12 - $50.56

Last Trade: $48.75

 

Here is the trade: 

Buy One October $47 Call Option

Sell One October $50 Call option

Trade

  • Buy 1 October $47.00 Call at $2.25
  • Sell 1 October $50.00 Call at $0.95
  • For a net debit of $1.30

Profit/Loss Analysis

  • Breakeven at $48.30
  • Maximum profit is $170.00 at strike of $50.00
  • Maximum loss is ($130.00) at strike of $47.00

Closing Summary

  • Sold 1 October $47.00 Call at $2.80
  • Bought 1 October $50.00 Call at $0.95

Position closed on 10/1/2013 at price of $1.85 with a 42.31% gain in 8 days.

Updates

10/1/2013 11:59:22 AM

We are taking prfoits on ARMH call spread.

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