Put Spread on DUK on 6/8/2015

Duke Energy Corporation (DUK) operates as an energy company in the United States and Latin America.

It operates through three segments: Regulated Utilities, International Energy, and Commercial Power.

The Regulated Utilities segment generates, transmits, distributes, and sells electricity in the Carolinas, Florida, Ohio, Kentucky, and Indiana; and transports and sells natural gas in southwestern Ohio and northern Kentucky. This segment owns approximately 50,000 megawatts of generation capacity; and uses coal, hydroelectric, natural gas, oil, and nuclear fuel to generate electricity. It serves approximately 7.3 million retail electric customers in 6 states in the Southeast and Midwest regions of the United States with a service area covering approximately 95,000 square miles; and approximately 500,000 retail natural gas customers in southwestern Ohio and northern Kentucky. This segment is also involved in the wholesale of electricity to incorporated municipalities, electric cooperative utilities, and other load-serving entities.

The International Energy segment operates and manages power generation facilities; and markets and sells electric power, natural gas, and natural gas liquids. This segment serves retail distributors, electric utilities, independent power producers, marketers, and industrial and commercial companies.

The Commercial Power segment builds, develops, and operates wind and solar renewable generation and energy transmission projects, as well as high voltage power projects.

Shares have fallen thrugh a support level and are expected to continue to move lower. Note that utility stocks move in tandem with 10-year bonds. The rising rates have pushed utility shares lower and DUK is no exception!

52-Weeks Trading Range: $68.81 - $89.97

Last Trade: $72.85.

Trade Buy 1 July $72.50 Put at $1.30 Sell 1 July $70.00 Put at $0.60 For a net debit of $0.70 Profit/Loss Analysis Breakeven at $71.80 Maximum profit is $180.00 at strike of $70.00 Maximum loss is ($70.00) at strike of $73.00 Closing Summary Sold 1 July $72.50 Put at $0.00 Bought 1 July $70.00 Put at $0.00

Position closed on 7/19/2015 at price of $0.00 with a -100.00% loss in 41 days.

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