Best Stock on the Market

Put Options on PDCO on 5/27/2014

Bearish Flag on PDCOPatterson Companies (PDCO) distributes dental, veterinary, and rehabilitation supplies.

Its Dental Supply segment offers consumable dental supplies, such as X-ray films and solutions; impression and restorative materials; hand instruments; sterilization and infection control products; anesthetics; paper, cotton, and disposable products; toothbrushes; dental accessories; printed office products, office filing supplies, and practice management systems; radiography equipment, hand pieces, dental chairs and hand piece control units, diagnostic equipment, sterilizers, dental lights and compressors, chair-side restoration systems, digital imaging products, and inter-oral cameras; and custom hardware and networking solutions. This segment also develops and markets software for scheduling, billing, charting, and capturing/storing/retrieving digital images; offers electronic patient education services to dental practices; and provides software, dental office design, and equipment financing, as well as equipment installation, repair, and maintenance services. Its Veterinary Supply segment offers pharmaceuticals, vaccines, parasiticides, diagnostics, pet food, nutritional products, and consumable supplies; veterinary equipment and software; and histology, pathology, haematology, chemistry, and microbiology services to veterinary practices. The company’s Rehabilitation Supply segment offers distributed and self-manufactured rehabilitation medical supplies and assistive products; and equipment, software, and services to acute care hospitals, long-term care facilities, rehabilitation clinics, dealers, and schools. 

Shares have formed a bearish "flag" after the firm reported earnings of 61 cents per share, below the expected 66 cents. Adjusted net earnings fell 3.4% to $61.4 million from $63.6 million in the year-ago quarter. 

Lower share prices are expected for this stock.

52-Week Trading Range: $36.59 - $44.39  

Last Trade: $39.34

Trade

  • Buy 1 June $40.00 Put at $1.25
  • For a net debit of $1.25

Profit/Loss Analysis

  • Breakeven at $38.75
  • Maximum profit is unbounded
  • Maximum loss is ($125.00) at strike of $40.00

Closing Summary

  • Sold 1 June $40.00 Put at $0.00

Position closed on 6/23/2014 at price of $0.00 with a -100.00% loss in 26 days.

Back to Portfolio