Best Stock on the Market

Call Options on DST on 1/23/2015

Bullish Pennant on DSTDST Systems, Inc. (DST) provides information processing and software services and products primarily in the United States, the United Kingdom, Canada, and Australia.

The company’s Financial Services segment offers various solutions primarily to the asset management, brokerage, retirement, and insurance industries. This segment provides various solutions, including shareowner recordkeeping and distribution support systems for the United States (U.S.) and international mutual fund companies, broker/dealers, and financial advisors; and a defined-contribution participant recordkeeping system for the U.S. retirement plan market. It also offers investment management systems for the U.S. and international investment managers and fund accountants; and business process management and customer contact system for various industries.

The company’s Healthcare Services segment provides various solutions comprising medical and pharmacy claims administration processing systems and services for providers of healthcare plans, third party administrators, medical practice groups, and pharmacy benefit managers. DST Systems, Inc.’s Customer Communications segment helps businesses deploy customer communications while enhancing operational performance across critical business functions, such as sales, marketing, customer service, technology, finance, operations, and compliance. This segment enables clients to deliver information in the desired combination of print, digital, and archival formats. Its product offering combines data insights and analysis with business decision-making tools, and multi-channel execution and delivery designed to help businesses acquire, grow, retain, and win back customers.

The company also owns and operates real estate properties; and has investments in equity securities, private equity investments, and other financial interests.

Shares have formed a bullish "wedge" or "pennant" and should be moving higher. The firm reports next week, and furthermore we are hearing rumors that the issue will be named by a leading stock advisory service as one of its "top picks." This service is widely followed by mutual funds and institutional money managers. These investors have portfolios that mimic recommendations of this service. Their naming of the stock should lead to additional demand for the shares. 

52-Week Trading Range: $81.83 - $100.38

Last Trade: $96.50

Trade

  • Buy 1 February $95.00 Call at $3.35
  • For a net debit of $3.35

Profit/Loss Analysis

  • Breakeven at $98.35
  • Maximum profit is unbounded
  • Maximum loss is ($335.00) at strike of $95.00

Closing Summary

  • Sold 1 February $95.00 Call at $4.90

Position closed on 2/3/2015 at price of $4.90 with a 46.27% gain in 11 days.

Updates

2/3/2015 2:17:28 PM

We are taking profits on DST call options. Closed at $4.90

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