Put Spread on UA on 4/12/2016

Under Armour, Inc (UA) develops, markets, and distributes branded performance apparel, footwear, and accessories for men, women, and youth primarily in North America, Europe, the Middle East, Africa, the Asia-Pacific, and Latin  America. 

The company sells its products through national and regional sporting goods chains, independent and specialty retailers, department store chains, institutional athletic departments, and leagues and teams, as well as independent distributors; and directly to consumers through a network of brand and factory house stores, and Website.  It offers its apparel in compression, fitted, and loose types to be worn in hot, cold, and in between the extremes. It provides various footwear products, including football, baseball, lacrosse, softball and soccer cleats, slides, performance training, running, basketball, and outdoor footwear. 

Several negative events have pushed shares lower. Those include: soft sales, issunace of additional shares, melt down of Spieth at the Masters.

Shares have now dropped below their 50-day moving average (shown in red or maroon), the next possible support should be in the $37 to $35 range.  We will be trading May 20th Put Options.

Last Trade: $41.15

52-Weeks Trading Range: $31.62 - 52.95

Trade Buy 1 May $42.50 Put at $2.95 Sell 1 May $37.50 Put at $1.00 For a net debit of $1.95 Profit/Loss Analysis Breakeven at $40.55 Maximum profit is $305.00 at strike of $37.00 Maximum loss is ($195.00) at strike of $43.00 Closing Summary Sold 1 May $42.50 Put at $3.96 Bought 1 May $37.50 Put at $0.70

Position closed on 5/6/2016 at price of $3.26 with a 67.18% gain in 23 days.

Updates

5/6/2016 10:36:56 AM

We are taking profits on UA Put Spread.

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