Best Stock on the Market

Put Options on URBN on 9/25/2013

Bearish Flag on URBNUrban Outfitters (URBN) engages in the retail and wholesale of general consumer products in the United States.

It operates in two segments, Retail and Wholesale. The company operates retail stores under the Urban Outfitters, Anthropologie, Free People, Terrain, and BHLDN brands. Its Urban Outfitters stores sell women’s and men’s fashion apparel, footwear, accessories, and gifts, as well as apartment wares, such as rugs and pillows to young adults aged 18 to 28; and Anthropologie stores provide women’s casual apparel and accessories, shoes, gifts, decorative items, and home furnishings to women aged 28 to 45.

The company’s Free People stores primarily offer Free People branded merchandise mix of casual women’s apparel, intimates, shoes, accessories, and gifts to young contemporary women aged 25 to 30; Terrain stores provide lifestyle home and garden products, antiques, live plants, flowers, wellness products, and accessories, as well as landscape and design service solutions; and BHLDN store offers a range of wedding collections consisting of wedding gowns, bridesmaid frocks, party dresses, assorted jewelry, headpieces, footwear, lingerie, and decorations. As of January 31, 2013, it operated 215 Urban Outfitters stores, 180 Anthropologie stores, 77 Free People stores, 2 Terrain garden centers, and 1 BHLDN store in North America and Europe.

The company also operates a wholesale business under the Free People brand name that distributes young women’s casual wear to other retailers and department stores in the United States. 

Shares have formed a bearish flag and lower share prices are expected for this stock.

52-Week Trading Range: $34.38 - $44.96

Last Trade: $37.15

Here is the trade: 

Trade

  • Buy 1 October $38.00 Put at $1.45
  • For a net debit of $1.45

Profit/Loss Analysis

  • Breakeven at $36.55
  • Maximum profit is unbounded
  • Maximum loss is ($145.00) at strike of $38.00

Closing Summary

  • Sold 1 October $38.00 Put at $1.85

Position closed on 9/30/2013 at price of $1.85 with a 27.59% gain in 5 days.

Updates

9/30/2013 10:02:51 AM

We are taking profits on URBN Put option trade.

Back to Portfolio