Best Stock on the Market

Put Spread on KSU on 5/18/2015

Bearish Flag on KSUKansas City Southern (KSU) engages in the freight rail transportation business.

It operates north/south rail route between Kansas City, Missouri, and various ports along the Gulf of Mexico in Alabama, Louisiana, Mississippi, and Texas in the midwest and southeast regions of the United States.

The company also operates direct rail passageway between Mexico City and Laredo, Texas serving various Mexico’s industrial cities and three of its seaports; a 157-mile rail line extending from Laredo, Texas to the port city of Corpus Christi, Texas; and The Kansas City Southern Railway Company rail line between Meridian, Mississippi and Shreveport, Louisiana, as well as owns the northern half of the rail bridge at Laredo, Texas.

Its coordinated rail network comprises approximately 6,500 route miles extending from the midwest and southeast portions of the United States south into Mexico and connects with other Class I railroads.

The company serves customers conducting business in various industries, including electric-generating utilities, chemical and petroleum products, paper and forest products, agriculture and mineral products, automotive products, and intermodal transportation.

Shares have formed a bearish flag following the company's recent quarterly report. Lower share prices are expected for this stock. Note that stock got two downgrades this morning!

 

52-Weeks Trading Range: $92.63 to $126.49

Last Trade: $94.50

Trade

  • Buy 1 June $95.00 Put at $2.45
  • Sell 1 June $90.00 Put at $0.45
  • For a net debit of $2.00

Profit/Loss Analysis

  • Breakeven at $93.00
  • Maximum profit is $300.00 at strike of $90.00
  • Maximum loss is ($200.00) at strike of $95.00

Closing Summary

  • Sold 1 June $95.00 Put at $4.55
  • Bought 1 June $90.00 Put at $1.50

Position closed on 5/29/2015 at price of $3.05 with a 52.50% gain in 11 days.

Updates

5/29/2015 9:58:40 AM

We are taking profits on KSU Put Spread at $3.05

Back to Portfolio