Best Stock on the Market

Call Spread on DY on 7/5/2016

Bullish Flag on DYDycom Industries, Inc. (DY) provides specialty contracting services in the United States and Canada.

The company offers a range of specialty contracting services, such as engineering, construction, maintenance, and installation services comprising placement and splicing of fiber, copper, and coaxial cables to telecommunications providers.

It also provides underground facility locating services, including locating telephone, cable television, power, water, sewer, and gas lines to various utilities, which comprise telecommunications providers. In addition, the company offers tower construction, lines and antenna installation, and foundation and equipment pad construction services for wireless carriers, as well as equipment installation and material fabrication, and site testing services; and installs and maintains customer premise equipment, such as digital video recorders, set top boxes, and modems for cable television system operators.

Further, it performs construction and maintenance services for electric and gas utilities, and other customers. Shares have formed a bullish "flag" following the company's latest quarterly results and its purchase of one of its competitors. Earnings  came to $1.08 per share, well above the expected 75 cents per share. Revenue of $664.6 million in the period, also topped the expected $598 million. For the current quarter ending in July, Dycom Industries expects its per-share earnings to range from $1.45 to $1.60. Analysts   had forecast adjusted earnings per share of $1.36. On June 3rd, the company announced that it will buy certain telecom-related assets of Goodman Networks Incorporated for about $107.5 million in cash. Higher sharre prices are expected for this stock.

We will be trading August 19th, 2016

 

52-Weeks Trading Range: $47.10 - $91.30

Last Trade: $88.70

 

Trade

  • Buy 1 August $85.00 Call at $7.20
  • Sell 1 August $95.00 Call at $2.20
  • For a net debit of $5.00

Profit/Loss Analysis

  • Breakeven at $90.00
  • Maximum profit is $500.00 at strike of $95.00
  • Maximum loss is ($500.00) at strike of $85.00

Closing Summary

  • Sold 1 August $85.00 Call at $11.10
  • Bought 1 August $95.00 Call at $3.95

Position closed on 7/8/2016 at price of $7.15 with a 43.00% gain in 3 days.

Updates

7/8/2016 10:14:07 AM

Taking profits on DY Call Spread

Back to Portfolio