Put Options on GPS on 10/1/2015

The Gap, Inc. (GPS) operates as an apparel retail company worldwide.

It offers apparel, accessories, and personal care products for men, women, and children under the Gap, Banana Republic, Old Navy, Athleta, and Intermix brand names.

The company provides apparel, handbags, shoes, jewelry, personal care products, and eyewear for men and women; and performance and lifestyle apparel for use in yoga, strength training, and running, as well as seasonal sports, including skiing and tennis. It offers its products through company-operated stores, franchise stores, Websites, e-commerce and social sites, and catalogs.

The company has franchise agreements with unaffiliated franchisees to operate Gap, Banana Republic, and Old Navy stores in Asia, Australia, Europe, Latin America, the Middle East, and Africa. As of January 31, 2015, it operated 3,280 company-operated stores.

Shares have formed a "bearish flag" after head of its Old Navy division was tapped by Ralph Lauren (RL) as its new CEO. Lower share prices are expected.

52-Weeks Trading Range: $27.59 - $43.90

Last Trade: $27.85

Buy one October 16th $28.5 Put Option

Trade Buy 1 October $28.50 Put at $1.40 For a net debit of $1.40 Profit/Loss Analysis Breakeven at $27.10 Maximum profit is unbounded Maximum loss is ($140.00) at strike of $29.00 Closing Summary Sold 1 October $28.50 Put at $1.90

Position closed on 10/13/2015 at price of $1.90 with a 35.71% gain in 11 days.

Updates

10/13/2015 1:30:56 PM

Taking profits on GPS Oct $28.50 Put Options at $1.90.

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