Put Options on WTW on 3/11/2013

Weight Watchers International (WTW) provides weight management services in North America, the United Kingdom, Continental Europe, Australia, New Zealand, and internationally.

It offers a range of products and services comprising nutritional, exercise, and behavioral tools and approaches. The company also provides various products, including bars, snacks, cookbooks, and food and restaurant guides with PointsPlus values, Weight Watchers magazines, PointsPlus calculators, and ActiveLink, an activity monitor and Web experience that tracks activity throughout the day.

In addition, it offers Internet subscription products, such as Weight Watchers Online that offers online and mobile content, functionality, resources, and interactive Web-based weight management plans; and Weight Watchers eTools, an Internet weight management product, which allows users to manage the day-to-day aspects of weight management plans online or via their mobile devices, discover different food options, and keep track of their weight management efforts. 

Shares have formed a bearish "flag" following release of its earnings. Lower prices are expected for this stock.

52-Week Trading Range:  $40.60 - $82.91

Last Trade: $41.10

Trade Buy 1 April $40.00 Put at $1.35 For a net debit of $1.35 Profit/Loss Analysis Breakeven at $38.65 Maximum profit is unbounded Maximum loss is ($135.00) at strike of $40.00 Closing Summary Sold 1 April $40.00 Put at $0.05

Position closed on 4/19/2013 at price of $0.05 with a -96.30% loss in 39 days.

Updates

4/19/2013 12:01:42 PM

WTW trade went against us. 

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