Call Spread on AAP on 8/19/2015

Advance Auto Parts, Inc. (AAP) operates as a specialty retailer of automotive replacement parts, accessories, batteries, and maintenance items.

It operates stores that offer brand name, original equipment manufacturer, and private label automotive products, including alternators, batteries, belts and hoses, brakes and brake pads, chassis parts, climate control parts, clutches, driveshafts, engines and engine parts, ignition parts, lighting, radiators, starters, spark plugs and wires, steering and alignment parts, transmissions, water pumps, and windshield wiper blades; accessories, such as air fresheners, automotive paint, anti-theft devices, emergency road kits, floor mats, ice scrapers, mirrors, seat and steering wheel covers, and vent shades; chemicals comprising antifreeze, brake and power steering fluid, car washes and waxes, freon, fuel additives, and windshield washer fluid; and oils, transmission fluids, and other automotive petroleum products for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks.

The company also provides battery and wiper installation, battery charging, check engine light reading, electrical system testing, video clinics, loaner tool programs, and oil and battery recycling services, as well as loaner tool programs. In addition, it sells products online. The company serves do-it-yourself, do-it-for-me, or commercial customers in the northeastern, Mid-Atlantic, and southeastern regions of the United States. As of July 18, 2015, it operated 5,252 stores and 117 Worldpac branches; and served approximately 1,300 independently-owned Carquest branded stores in the United States, Canada, Puerto Rico, and the U.S. Virgin Islands.

Shares have formed a bullish "flag" following its recent quarterly report as well as positive comments from analysts. Higher share prices are expected for this stock.

52-Weeks Trading Range: $128.20 - $192.27

Last Trade: $186.50

Trade Buy 1 September $185.00 Call at $5.00 Sell 1 September $195.00 Call at $1.30 For a net debit of $3.70 Profit/Loss Analysis Breakeven at $188.70 Maximum profit is $630.00 at strike of $195.00 Maximum loss is ($370.00) at strike of $185.00 Closing Summary Sold 1 September $185.00 Call at $0.00 Bought 1 September $195.00 Call at $0.00

Position closed on 9/21/2015 at price of $0.00 with a -100.00% loss in 32 days.

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