Call Spread on HLF on 12/27/2013

Herbalife Ltd. (HLF) produces and distributes weight management, healthy meals and snacks, sports and fitness, energy and targeted nutritional products, and personal care products worldwide.

It offers science-based products in four principal categories, including weight management; targeted nutrition; energy, sports, and fitness; and outer nutrition. The weight management product portfolio includes meal replacement, protein shakes, drink mixes, weight loss enhancers, and healthy snacks. The targeted nutrition products comprise dietary and nutritional supplements containing quality herbs, vitamins, minerals, and other natural ingredients.

The energy, sports, and fitness products consist of products designed to meet the nutritional needs of athletes, such as Herbalife24 product line, which enables athletes to customize their nutrition program based on personal training and competitive demands throughout the day. The outer nutrition products include skin cleansers, toners, moisturizers, facial masks, shampoos and conditioners, body-wash items, and a selection of fragrances for men and women, as well as anti-aging products.

The company also sells literature and promotional materials, including ‘International Business Packs’, start-up kits, sales tools, and educational materials, as well as Internet based tools, such as BizWorks, a customizable retail Website for its distributors.

52-Week Trading Range: $28.61 - $81.75

Last Trade: $78.90

Trade Buy 1 January $80.00 Call at $3.50 Sell 1 January $82.50 Call at $2.50 For a net debit of $1.00 Profit/Loss Analysis Breakeven at $81.00 Maximum profit is $150.00 at strike of $83.00 Maximum loss is ($100.00) at strike of $80.00 Closing Summary Sold 1 January $80.00 Call at $4.00 Bought 1 January $82.50 Call at $2.35

Position closed on 1/8/2014 at price of $1.65 with a 65.00% gain in 12 days.

Updates

1/8/2014 10:21:36 AM

We are taking profit on HLF call spread.

Back to Portfolio