Put Spread on STX on 10/20/2015

Seagate Technology Public Limited Company (STX) designs, manufactures, and sells electronic data storage products in the Asia Pacific, the Americas, and EMEA countries.

It provides hard disk drives, solid state hybrid drives, solid state drives, PCIe cards, and serial advanced technology architecture controllers that are designed for enterprise servers and storage systems in mission critical and nearline applications; for client compute applications comprising desktop and mobile computing; and for client non-compute applications, such as digital video recorders, personal data backup systems, portable external storage systems, digital media systems, and surveillance systems.

The company also provides storage subsystems and high performance computing solutions, as well as data storage services, including online backup, data protection, and recovery solutions for small to medium-sized businesses. In addition, it ships external backup storage solutions under its Backup Plus and Expansion product lines, as well as under the Samsung and LaCie brand names.

Shares have formed a bearish "flag" after stock was owngraded by several brokerage houses as company failed to launch several products on time. Products suchs as: high capacity drives, the company’s hybrid product, as well as its 8 TB. Lower share prices are expected for this stock. The company reports its results on October 30th!

We are trading November 20th Options.

52-Weeks Trading Range: $38.43 to $69.40

Last Trade: $38.75

Trade Buy 1 November $38.50 Put at $2.20 Sell 1 November $35.50 Put at $1.00 For a net debit of $1.20 Profit/Loss Analysis Breakeven at $37.30 Maximum profit is $180.00 at strike of $35.00 Maximum loss is ($120.00) at strike of $39.00 Closing Summary Sold 1 November $38.50 Put at $2.25 Bought 1 November $35.50 Put at $0.50

Position closed on 11/10/2015 at price of $1.75 with a 45.83% gain in 21 days.

Updates

11/10/2015 2:52:18 PM

We are taking proft on STX Put spread. 

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