Put Spread on GPS on 4/11/2016

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 brands. The company provides apparel, eyewear, jewelry, shoes, handbags, and fragrances; and performance and lifestyle apparel for use in yoga, strength training, and running, as well as seasonal sports, including skiing and tennis.

The Gap, Inc. offers its products through company-operated stores, franchise stores, Websites, e-commerce and social media 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 30, 2016, it operated, 3,721 company-operated and franchise store locations. Shares have formed a bearish "flag" after its March sales declined sharply. The company reported March net sales of $1.43 billion, which dropped 6.5% from $1.53 billion recorded for the five weeks ended Apr 4, 2015. Comps for the five weeks ended Apr 2, 2016 were down 6% as against a 2% rise witnessed last year. The company blamed an early Easter for its miss. In fact, and early Easter should have helped! We should see lower prices for this stock.

52-Weeks Trading Range: $21.57 - $41.42

Last Trade: $24.13.

Trade Buy 1 May $25.00 Put at $1.50 Sell 1 May $22.00 Put at $0.50 For a net debit of $1.00 Profit/Loss Analysis Breakeven at $24.00 Maximum profit is $200.00 at strike of $22.00 Maximum loss is ($100.00) at strike of $25.00 Closing Summary Sold 1 May $25.00 Put at $2.55 Bought 1 May $22.00 Put at $0.60

Position closed on 5/3/2016 at price of $1.95 with a 95.00% gain in 21 days.

Updates

5/3/2016 9:49:15 AM

We are taking profits on GPS Put Spread.

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