Put Spread on TRUE on 4/9/2015

TrueCar, Inc. (TRUE) operates as an Internet-based information, technology, and communication services company.

The company operates its platform on the TrueCar Website and TrueCar mobile applications.

It also customizes and operates its platform for its affinity group marketing partners, including financial institutions, membership-based organizations, and employee buying programs for large enterprises.

The company’s platform enables users to obtain market-based pricing data on new and used cars, and to connect with its network of TrueCar certified dealers. In addition, it provides data and consulting services regarding determination of the residual value of an automobile at future given points in time, which are used to underwrite automotive loans and leases, and by financial institutions to measure exposure and risk across loan, lease, and fleet portfolios. Further, it provides geographically specific and real-time pricing information for consumers and dealers. 

Shares have fallen below a key support after its numbers came in below expectations. Lower share prices are expected for this stock.

52-Weeks Trading Range: $9.05 - $25.00

Last Trade: $16.03

Trade Buy 1 May $17.50 Put at $2.15 Sell 1 May $15.00 Put at $0.95 For a net debit of $1.20 Profit/Loss Analysis Breakeven at $16.30 Maximum profit is $130.00 at strike of $15.00 Maximum loss is ($120.00) at strike of $18.00 Closing Summary Sold 1 May $17.50 Put at $2.40 Bought 1 May $15.00 Put at $0.70

Position closed on 4/22/2015 at price of $1.70 with a 41.67% gain in 13 days.

Updates

4/22/2015 12:10:55 PM

We are taking profits on TRUE put spread.

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