Call Spread on MTW on 2/4/2014

The Manitowoc Company (MTW) engages in the design, manufacture, and sale of cranes and related products, and foodservice equipment worldwide.

It operates through two segments, Cranes and Related Products, and Foodservice Equipment. The Cranes and Related Products segment offers lattice-boom cranes, including crawler and truck mounted lattice-boom cranes, and crawler crane attachments; tower cranes comprising top slewing luffing jib, topless, and self-erecting tower cranes; mobile telescopic cranes consisting of rough terrain, all-terrain, truck mounted, and industrial cranes; and boom trucks, such as telescopic boom trucks under the Manitowoc, Grove, Potain, National Crane, Shuttlelift, Crane care, and Dongyue brands.

Its products are used for various applications, including energy and utilities; petrochemical and industrial projects; infrastructure development, such as road, bridge, and airport construction; and commercial and high-rise residential construction industries. This segment also provides crane product parts and services, and crane rebuilding, remanufacturing, and training services under the Manitowoc Crane Care brand name. The Foodservice Equipment segment provides cooking and warming equipment; ice machines and storage bins; refrigerator and freezer equipment; beverage dispensers and related products; serving and storage equipment; and food preparation equipment. This segment offers its products under Cleveland, Convotherm, Delfield, Frymaster, Garland, Kolpak, Kysor Panel Systems, Lincoln, Manitowoc, Merrychef, Multiplex, and Servend brand names.

Its products are primarily used by commercial and institutional foodservice operators, such as full service restaurants, quick-service restaurant chains, hotels, caterers, supermarkets, convenience stores, business and industry, hospitals, schools, and other institutions.

Shares are in the process of forming a bullish "flag" following the company's better than expected quarterly results. Higher share prices are expected to head higher from the present level.

52-Week Trading Range: $16.18 - $29.39

Last Trade: $27.20

Trade Buy 1 March $27.00 Call at $1.60 Sell 1 March $30.00 Call at $0.50 For a net debit of $1.10 Profit/Loss Analysis Breakeven at $28.10 Maximum profit is $190.00 at strike of $30.00 Maximum loss is ($110.00) at strike of $27.00 Closing Summary Sold 1 March $27.00 Call at $3.00 Bought 1 March $30.00 Call at $1.05

Position closed on 2/20/2014 at price of $1.95 with a 77.27% gain in 16 days.

Updates

2/20/2014 11:22:01 AM

We are taking profits on MTW call spread.

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