Put Options on ARUN on 5/8/2013

Aruba Networks (ARUN) provides network access solutions for the mobile enterprises worldwide.

It offers ArubaOS, an operating system software for wired, wireless, and remote access products for integrating user-based security, application-aware radio-frequency services, and wireless local area network (LAN) access to deliver mobile networking solutions, as well as provides various software modules for ArubaOS. The company also offers Mobility Controllers, which provides context-aware networking across wireless and wired LANs, virtual private network (VPN) connections, and remote offices; ClearPass Access Management System for bring your own device provisioning and onboarding, as well as for IT-issued and personal mobile devices to connect to any network; Aruba Instant, a controller-less Wi-Fi solution; AirWave, a multivendor network management software that manages radio frequency (RF) environment, controllers, wired infrastructure, and access points; and Access Points, which offers integrated RF management, intrusion prevention, and support for maximum client density of smartphones and tablets.

The company reported earnings that missed the estimates and guided lower going forward. The news has sent the shares into a bearish "flag" as lower prices are expected for this stock.

52-Week Trading Range: $12.36 - $26.78

Last Trade:  $17.93

Trade Buy 1 June $19.00 Put at $1.90 For a net debit of $1.90 Profit/Loss Analysis Breakeven at $17.10 Maximum profit is unbounded Maximum loss is ($190.00) at strike of $19.00 Closing Summary Sold 1 June $19.00 Put at $6.40

Position closed on 5/17/2013 at price of $6.40 with a 236.84% gain in 8 days.

Updates

5/17/2013 9:33:25 AM

ARUN guided its quarterly results lower. Shares last traded at $12.45. The recommended put was closed at $6.50

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