Put Options on GRMN on 4/6/2015

Garmin Ltd. (GRMN) designs, develops, manufactures, and markets hand-held, wrist-based, and portable and fixed-mount global positioning system (GPS) enabled products; and other navigation, communication, and information products worldwide.

It operates in five segments: Automotive/Mobile, Aviation, Marine, Outdoor, and Fitness.

The Automotive/Mobile segment offers personal automotive navigation devices; and infotainment solutions, as well as mobile applications under the Viago, StreetPilot, and NAVIGON brands.

The Aviation segment provides GPS-enabled navigation, VHF communications transmitters/receivers, multi-function displays, electronic flight instrumentation systems, automatic flight control systems, traffic advisory systems and traffic collision avoidance systems, terrain awareness and warning systems, instrument landing system receivers, surveillance products, audio panels, cockpit datalink systems, and others.

The Marine segment offers chartplotters and multi-function displays, fish finders, sounders, autopilot systems, radars, compliant instrument displays, radios, handhelds and wrist-worn devices, sailing products, and integrated marine audio equipment.

The Outdoor segment provides outdoor handhelds, wrist watches, golf devices, dog tracking and training/pet obedience devices, and action cameras. The Fitness segment offers running/multi-sport watches for athletes; personal training systems and pedal-based power meters for cyclists; activity tracking devices for corporate wellness programs; watches designed for swimming pool use; and Garmin Connect, a Web-based analytic tool that allows users to store, analyze, and share fitness and wellness data.

Shares have broken below amajor support and have fallen out of a bearish "flag." Lower share prices are expected. 

52-Weeks Trading: $45.92 - $62.05

Last Trade: $46.24

Trade Buy 1 May $47.50 Put at $2.60 For a net debit of $2.60 Profit/Loss Analysis Breakeven at $44.90 Maximum profit is unbounded Maximum loss is ($260.00) at strike of $48.00 Closing Summary Sold 1 May $47.50 Put at $1.50

Position closed on 5/14/2015 at price of $1.50 with a -42.31% loss in 38 days.

Updates

4/29/2015 10:49:55 AM

GRMN is down $2.63 to $44.85 after the firm missed its quarterly estimates. Keep a close eye on the position, as our $47.50 May Put is now in the green.

5/14/2015 12:19:38 PM

We are closing GRMN May $47.5 Put option at $1.50 to minimize our losses. This contract becomes worthless tomorrow at the close!

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