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Call Spread on GIMO on 7/25/2016

Bullish Cup & Handle on GIMOGigamon Inc. (GIMO) designs, develops, and sells products and services that provide customers with visibility and control of network traffic for enterprises and services providers.

It offers traffic visibility fabric solutions consisting of network traffic intelligence, such as controls for traffic selection, forwarding, manipulation, modification, de-duplication, SSL decryption, correlation, sampling, and generation of flow records.

The company also provides Flow Mapping technology that identifies and directs incoming traffic to single or various tools based on user-defined rules that could be managed from a centralized management console; and GigaSMART platform, which offers a range of software applications to modify, manipulate, transform, filter, correlate, and sample network traffic.

Its products include GigaVUE product family that provides end-user customers to design visibility fabric architectures optimized for a range of scale and performance requirements from monitoring in virtualized server environments, as well as to 1 gigabit appliances to multi-terabit chassis-based solutions.

The company also offers ongoing technical support services with hardware and software products, including ongoing maintenance services for hardware and software, which enable the customers to receive ongoing software updates, bug fixes, and repairs; and replacement services for defective hardware. 

Shares have formed a bullish "cup and handle" and higher share prices are expected for this stock. Note that the firm reports its results on July 28. We expect a strong report from the firm!

 

52-Weeks Trading Range: $18.93 - $43.28

Entry Point: $42.30

Trade

  • Buy 1 August $40.00 Call at $4.50
  • Sell 1 August $47.50 Call at $1.50
  • For a net debit of $3.00

Profit/Loss Analysis

  • Breakeven at $43.00
  • Maximum profit is $450.00 at strike of $48.00
  • Maximum loss is ($300.00) at strike of $40.00

Closing Summary

  • Sold 1 August $40.00 Call at $6.00
  • Bought 1 August $47.50 Call at $1.00

Position closed on 7/29/2016 at price of $5.00 with a 66.67% gain in 4 days.

Updates

7/29/2016 9:38:19 AM

We are taking profis on GIMO Call Spread

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