Put Options on SWI on 5/9/2013

SolarWinds (SWI) designs, develops, markets, sells, and supports enterprise-class information technology (IT) and infrastructure management software to IT professionals in various organizations worldwide.

The company offers enterprise-class network management products, including SolarWinds Network Performance Monitor that monitors and analyzes network performance metrics for routers, switches, servers, and other simple network management protocol enabled devices; additional network management products for various network management issues; and SolarWinds Log and Event Manager, a server-based product that automates the collection and interpretation of logs from various sources.

It also provides enterprise-class systems and application performance management products, which facilitate system administrators to monitor and manage the performance of physical and virtual servers, applications, and storage devices. 

Shares have formed a bearish "flag" after it reported Q1 revenue below views as growth from new licenses slowed. The IT software maker also forecast current-quarter revenue below consensus estimates. SolarWinds' stock had plunged 17% since early March before it reported Q1 results  last Tuesday. Lower prices for the shares are expected. Shares should see $40 before too long!

52-Week Trading Range:  $39.10 to 61.52

Last Trade:  $45.14

Trade Buy 1 June $45.00 Put at $2.00 For a net debit of $2.00 Profit/Loss Analysis Breakeven at $43.00 Maximum profit is unbounded Maximum loss is ($200.00) at strike of $45.00 Closing Summary Sold 1 June $45.00 Put at $3.00

Position closed on 5/31/2013 at price of $3.00 with a 50.00% gain in 22 days.

Updates

5/31/2013 12:26:48 PM

We are closing this position. Be sure to Adjust your stop loss and lock in some profits.

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