Put Options on CIT on 4/30/2014

CIT Group Inc. (CIT) operates as the holding company for CIT bank that provides commercial financing and leasing products; and a suite of savings options in the United States.

The company operates in five segments: Corporate Finance, Transportation Finance, Trade Finance, Vendor Finance, and Consumer.

The Corporate Finance segment offers lending, leasing, and other financial and advisory services to small and middle-market companies in various industries, such as commercial and industrial, communications, media and entertainment, healthcare, and energy. The Transportation Finance segment provides aircraft and railcar, leasing and financing solutions to operators and suppliers in the aviation and railcar industries. This segment also offers lending and other financial products and services to companies in the transportation sector, such as business aircraft, maritime, and aerospace and defense industries. The Trade Finance segment provides a range of domestic and international customized credit protection, lending, and outsourcing services that include working capital and term loans, factoring, receivables management products, bulk purchases of accounts receivable, import and export financing, and letter of credit programs to retail supply chain companies. The Vendor Finance segment partners with manufacturers, distributors, dealers, and product resellers to deliver financing and leasing solutions to end-user customers for the acquisition of equipment. The Consumer segment offers government-guaranteed student loan portfolios, which are in run-off.

The company also provides account receivables collection, acquisition and expansion financing, asset management and servicing, credit protection, financial risk management, import and export financing, insurance, letters of credit, and mergers and acquisition advisory services, as well as debt restructuring, underwriting, and syndication services.

Shares have formed a bearish "flag" after the firm announced its quarterly results that disappointed the market and investors. Lower share prices are expected for this stock.

52-Week Trading Range: $42.04 - $52.72

Last Trade: $43.25

Trade Buy 1 June $44.00 Put at $1.65 For a net debit of $1.65 Profit/Loss Analysis Breakeven at $42.35 Maximum profit is unbounded Maximum loss is ($165.00) at strike of $44.00 Closing Summary Sold 1 June $44.00 Put at $3.00

Position closed on 5/15/2014 at price of $3.00 with a 81.82% gain in 15 days.

Updates

5/15/2014 11:12:23 AM

We are taking profits on CIT Put trade. Closed at $3.00.

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