Put Spread on BWLD on 1/31/2013

Buffalo Wild Wings (BWLD) engages in the ownership, operation, and franchise of restaurants primarily in the United States. It offers chicken and various food and beverage items, as well as serves bottled beers, wines, and liquor. The company operates its restaurants under Buffalo Wild Wings Grill & Bar brand name.

Stockwinners.com is bearish on this stock for the following reason:

Chicken prices are on the rise (see report from Tyson Food (TSN)) due to the last summer's drought and higher feed prices. TSN is one the largest chicken producers.

Chart has formed a multi-week bearish flag follwoing the company's last quarterly report.

There is a chicken wing shortage and that should directly affect this company

Here is the trade:

Buy One March $75 Put at $4.70

Sell One June $70 Put at $4.90

Receive 20c in credit

See the pay off chart below

Lose $1 if stock goes to $80+ by expiration in March

Make $2.00 if stock closes at $66 by Expiration

Make $3.00 if stock closes at $55 by Expiration

Trade Buy 1 March $75.00 Put at $4.70 Sell 1 June $70.00 Put at $4.90 For a net credit of ($0.20) Profit/Loss Analysis Maximum profit is $520.00 at strike of $70.00 Maximum loss is $20.00 at strike of $75.00 Closing Summary Sold 1 March $75.00 Put at $3.50 Bought 1 June $70.00 Put at $4.10

Position closed on 2/1/2013 at price of ($0.60) with a -200.00% loss in 1 days.

Updates

2/1/2013 2:45:21 PM

We are closing the BWLD trade. The stock was upgraded today and got a pop, and unfortunately we are on the wrong side of the trade. We are closing the position at .40 debit (0.2 credit at time of purchase and 0.60 debit at time of closing netting .4 debit) :(

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