Best Stock on the Market

Put Spread on PRGO on 4/26/2016

Bearish Flag on PRGOPerrigo Company plc (PRGO) develops, manufactures, markets, and distributes over-the-counter (OTC) consumer goods and pharmaceutical products worldwide.

The company operates through Consumer Healthcare (CHC), Branded Consumer Healthcare (BCH), Prescription Pharmaceuticals (Rx), Specialty Sciences, and Other segments.

The CHC segment offers OTC products in various categories, including analgesics, cough/cold/allergy/sinus, gastrointestinal, infant nutritional, smoking cessation, animal health, feminine hygiene, diabetes and dermatological care, diagnostic, scar management, and other healthcare products, as well as vitamins, minerals, and dietary supplements (VMS); and contract manufacturing services. It serves retail drug, supermarket, mass merchandise chains, and wholesalers through sales force and industry brokers.

The BCH segment provides branded OTC products in the natural health and VMS; cough, cold, flu, and allergy; personal care and derma-therapeutics; lifestyle; pain relief, nasal decongestants, and cold sore management; and anti-parasite areas, as well as offers generic pharmaceutical products. It serves pharmacies, drug, and grocery stores through pharmacy sales force, as well as a network of pharmacists.

The Rx segment offers generic and specialty pharmaceutical prescription drugs in various dosage forms, such as creams, ointments, lotions, gels, shampoos, foams, suppositories, sprays, liquids, suspensions, solutions, powders, controlled substances, injectables, hormones, women's health products, oral solid dosage forms, and oral liquid formulations; and ORx products.  

Shares are in the process of forming a bearish "flag" after its CEO left for Valent Pharma. (VRX), and  the company announced preliminary first-quarter results, lowered guidance. Lower share prices are expected for this stock.

 

We will be trading May 20th Options.

 

52-Weeks Trading Range: $98.81 - $200.96

Last Trade: $101.50

Trade

  • Buy 1 May $100.00 Put at $4.30
  • Sell 1 May $90.00 Put at $1.25
  • For a net debit of $3.05

Profit/Loss Analysis

  • Breakeven at $96.95
  • Maximum profit is $695.00 at strike of $90.00
  • Maximum loss is ($305.00) at strike of $100.00

Closing Summary

  • Sold 1 May $100.00 Put at $8.50
  • Bought 1 May $90.00 Put at $2.50

Position closed on 5/6/2016 at price of $6.00 with a 96.72% gain in 10 days.

Updates

5/6/2016 11:22:27 AM

We are taking profits on PRGO Put Spreads.

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