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Put Options on TXT on 7/27/2015

Bearish Flag on TXTTextron Inc. (TXT) operates in the aircraft, defense, industrial, and finance businesses worldwide.

It operates through five segments: Textron Aviation, Bell, Textron Systems, Industrial, and Finance.

The Textron Aviation segment manufactures business jets, turboprop aircraft, piston aircraft, military trainer and defense aircraft, and parts, as well as provides maintenance, inspection, and repair services. The Bell segment manufactures and supplies military and commercial helicopters, tiltrotor aircraft, and related spare parts and services.

The Textron Systems segment produces unmanned aircraft systems; smart weapons, airborne and ground-based sensors and surveillance systems, and protection systems; armored vehicles, turrets, and related subsystems, as well as marine crafts; test equipment and electronic warfare test, and training solutions; piston aircraft engines; and intelligence software solutions. This segment also designs, develops, manufactures, installs, and provides maintenance of full flight simulators, as well as offers training services.

The Industrial segment offers blow-molded plastic fuel systems, windshield and headlamp washer systems, catalytic reduction systems, and engine camshafts, as well as plastic bottles and containers; golf cars, off-road utility and light transportation vehicles, aviation ground support equipment, professional turf-maintenance equipment, and specialized turf-care vehicles; and powered equipment, electrical test and measurement instruments, mechanical and hydraulic tools, cable connectors, fiber optic assemblies, underground and aerial transmission and distribution products, and power utility products used in the construction, maintenance, telecommunications, data communications, electrical, utility, and plumbing industries.

Shares have formed a bearish "flag" ahead of the company's earnings report, and lower share prices are expected for this stock.

 

52-Weeks Trading Range: $32.22 - $46.93

Last Trade: $41.11

Trade

  • Buy 1 August $42.00 Put at $1.58
  • For a net debit of $1.58

Profit/Loss Analysis

  • Breakeven at $40.42
  • Maximum profit is unbounded
  • Maximum loss is ($158.00) at strike of $42.00

Closing Summary

  • Sold 1 August $42.00 Put at $1.00

Position closed on 8/21/2015 at price of $1.00 with a -36.71% loss in 25 days.

Updates

8/21/2015 10:09:01 AM

We are closing TXT August $42 Put options at $1.00 This contract expires today.

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