Put Spread on JWN on 5/15/2015

Nordstrom, Inc. (JWN) offers apparel, shoes, cosmetics, and accessories for men, women, and children in the United States and Canada.

It operates through two segments, Retail and Credit.

The Retail segment offers a selection of brand name and private label merchandise through various channels, including Nordstrom branded full-line stores and online store at Nordstrom.com; Nordstrom Rack stores; Nordstromrack.com and HauteLook; and other retail channels, including Trunk Club showrooms and TrunkClub.com, Jeffrey boutiques, and clearance store that operates under the name Last Chance.

The Credit segment operates Nordstrom fsb, a federal savings bank, which provides a private label credit card, two Nordstrom VISA credit cards, and a debit card. Its credit and debit cards feature a shopping-based loyalty program.

As of April 7, 2015, the company operated 299 stores in 38 states and Canada.

Shares have fallen below their 200-day moving average. Today's earnings report did little to put investors' worries at ease. Gross profit margin in fiscal 2015 is expected to be down by 5 to 15 basis points. Operating margins are expected to be adversely impacted by an increase in selling, general, and administrative expenses as a percentage of sales by 55 to 65 basis points.

We expect shares to find a support around the $70 level.

52-Weeks Trading Range: $64.92 - $83.16

Last Trade: $74.15

Trade Buy 1 June $75.00 Put at $2.40 Sell 1 June $70.00 Put at $0.80 For a net debit of $1.60 Profit/Loss Analysis Breakeven at $73.40 Maximum profit is $340.00 at strike of $70.00 Maximum loss is ($160.00) at strike of $75.00 Closing Summary Sold 1 June $75.00 Put at $2.00 Bought 1 June $70.00 Put at $5.00

Position closed on 6/15/2015 at price of ($3.00) with a -287.50% loss in 31 days.

Updates

6/15/2015 12:57:36 PM

We are closing JWN June Put Spread with a modest profit as shares appear to have found a support here!

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