Put Options on EXPR on 5/31/2016

Express, Inc. (EXPR) operates as a specialty apparel and accessories retailer.

It offers apparel and accessories for women and men between 20 and 30 years across various aspects of lifestyles, including work, casual, jeanswear, and going-out occasions.

The company sells its products through its e-commerce Website, express.com; mobile app; and franchisees Express locations in Latin America, the Middle East, and South Africa. As of January 30, 2016, it operated 653 stores in the United States, Canada, and Puerto Rico. 

Shares have formed a bearish "flag" after the firm reported weak earnings and cut its guidance going forward. 

Quarterly revenue came in essentially flat from the same year-ago period at $502.9 million, including a 3% decline in comparable-store sales, and translated to adjusted net income of $19 million, or $0.25 per share. Express anticipates comparable sales in the negative mid-single-digit percentage range, and net income of $12 million to $15 million, or $0.15 to $0.19 per share. For the full-year 2016, Express also reduced its guidance to call for comparable sales to be in the negative mid- to low-single-digit range. 

We expect lower share prices for this stock.

We will be trading June 17th Put Options. 

52-Weeks Trading Range: $13.25 - $21.57

Last Trade: $14.48

Trade Buy 1 June $15.00 Put at $0.80 For a net debit of $0.80 Profit/Loss Analysis Breakeven at $14.20 Maximum profit is unbounded Maximum loss is ($80.00) at strike of $15.00 Closing Summary Sold 1 June $15.00 Put at $0.75

Position closed on 6/16/2016 at price of $0.75 with a -6.25% loss in 16 days.

Updates

6/16/2016 12:41:05 PM

EXPR put options closed at 75c.

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