Put Options on STMP on 5/6/2014

Stamps.com (STMP) provides Internet-based postage solutions in the United States.

It offers solutions for mailing and shipping various mail pieces, including postcards, envelopes, flats, and packages using a range of United States Postal Service (USPS) mail classes, including First Class Mail, Priority Mail, Priority Mail Express, Media Mail, Parcel Select, and others. The company’s products and services include USPS approved PC Postage service that enables users to print electronic stamps directly onto envelopes, plain paper, or labels using personal computer, printer, and Internet connection; PC postage integration services, including electronic postage for transactions to partners who manage the front-end process; and PhotoStamps, a patented form of postage service, which allows consumers to turn digital photos, designs, or images into USPS-approved postages.

It also sells NetStamps labels, shipping labels, other mailing labels, postage printers, scales, and other mailing and shipping-focused office supplies through its mailing and shipping supplies store. In addition, the company offers Stamps.com branded insurance to insure mails or packages. It serves individuals, small businesses, home offices, medium-size businesses, and large enterprises.

Shares have formed a bearish "flag" following the company's quarterly earnings miss. Net income of 50 cents a share fell short of estimates by 4 cents. Revenue of $33.3 million climbed 4% year over year, but missed estimates of $33.64 million. Since then, shares have formed a bearish "flag" and lower share prices are expected for this stock.

52-Week Trading Range: $27.18 to $49.40

Last Trade: $29.06

Trade Buy 1 June $30.00 Put at $2.00 For a net debit of $2.00 Profit/Loss Analysis Breakeven at $28.00 Maximum profit is unbounded Maximum loss is ($200.00) at strike of $30.00 Closing Summary Sold 1 June $30.00 Put at $0.00

Position closed on 6/23/2014 at price of $0.00 with a -100.00% loss in 48 days.

Back to Portfolio