Best Stock on the Market

Put Spread on DG on 10/8/2015

Broken Support on DGDollar General Corporation (DG) is a discount retailer.

The company provides various merchandise products in the southern, southwestern, midwestern, and eastern United States.

The company offers consumable products, including paper and cleaning products comprising paper towels, bath tissues, paper dinnerware, trash and storage bags, and laundry and other home cleaning supplies; packaged food products, such as cereals, canned soups and vegetables, condiments, spices, sugar, and flour; perishables consisting of milk, eggs, bread, frozen meals, beer, and wine; snacks that comprise candies, cookies, crackers, salty snacks, and carbonated beverages; health and beauty products, such as over-the-counter medicines, as well as soap, body wash, shampoo, dental hygiene, and foot care products; pet products, which include pet supplies and pet food; and tobacco products.

It also provides seasonal products, including decorations, toys, batteries, small electronics, greeting cards, stationery products, prepaid phones and accessories, gardening supplies, hardware products, and automotive and home office supplies; and home products consisting of kitchen supplies, cookware, small appliances, light bulbs, storage containers, frames, candles, craft supplies and kitchen products, beds, and bath soft goods. In addition, the company offers apparel for infants, toddlers, girls, boys, women, and men, as well as socks, underwear, disposable diapers, shoes, and accessories. As of May 30, 2015, it operated 12,000 stores located in 43 states.

Shares have broken a support level after the company sales missed the estimates. Lower share prices are expected for this stock.

We are trading November 20th expiration options!

 

52-Week Trading Range: $53.70 to $84.22

Last Trade: $65.90

Trade

  • Buy 1 November $67.50 Put at $3.15
  • Sell 1 November $62.50 Put at $1.05
  • For a net debit of $2.10

Profit/Loss Analysis

  • Breakeven at $65.40
  • Maximum profit is $290.00 at strike of $62.00
  • Maximum loss is ($210.00) at strike of $68.00

Closing Summary

  • Sold 1 November $67.50 Put at $3.00
  • Bought 1 November $62.50 Put at $0.70

Position closed on 11/11/2015 at price of $2.30 with a 9.52% gain in 33 days.

Updates

11/11/2015 10:54:16 AM

We are taking profits on DG Put Spread.

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