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Put Options on BUD on 2/29/2016

Bearish Flag on BUDAnheuser-Busch InBev SA/NV (BUD) is a brewing company.

The firm engages in the production, distribution, and sale of beer, alcoholic beverages, and soft drinks worldwide.

It offers a portfolio of approximately 200 beer brands, which includes Budweiser, Corona, Stella Artois, Beck’s, Leffe, Hoegaarden, Bud Light, Skol, Brahma, Antarctica, Quilmes, Victoria, Modelo Especial, Michelob Ultra, Harbin, Sedrin, Klinskoye, Sibirskaya Korona, Chernigivske, Cass, and Jupiler. 

Shares have formed a bearish "flag" after it missed its guidance, and going forward it guided lower. The miss led to its debt downgrade.  Moody's Investors Service has downgraded Ambev S.A.'s issuer ratings to Baa3 from Baa1.

The 200-day moving average on the stock (shown in green) was breached a few days ago, and since then shares have continued to move lower. We expect shares to retest their 52-weeks low. 

 

March 18th Put Options are being traded 

 

52-Weesk Trading Range: $102.58 - $130.08

Last Trade: $112.25

Trade

  • Buy 1 March $115.00 Put at $4.10
  • For a net debit of $4.10

Profit/Loss Analysis

  • Breakeven at $110.90
  • Maximum profit is unbounded
  • Maximum loss is ($410.00) at strike of $115.00

Closing Summary

  • Sold 1 March $115.00 Put at $0.00

Position closed on 3/18/2016 at price of $0.00 with a -100.00% loss in 18 days.

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