Best Stock on the Market

Put Options on SFLY on 9/27/2016

Bearish Flag on SFLYShutterfly, Inc. (SFLY) engages in manufacturing and retailing personalized products and services in the United States.

The company operates through Consumer and Enterprise segments. It offers a range of personalized photo-based products and services that enable consumers to upload, edit, enhance, organize, find, share, create, print, and preserve their memories. The company also provides photo-based products, such as photo books; cards and stationery; photo gifts; home décor; photo prints comprising wallet 4x6, 5x7, 8x10, square, and large format sizes, including posters and collages; and photo-based merchandise items consisting of mugs, iPhone cases, desktop plaques, candles, pillows, canvas prints, and blankets.

In addition, it operates an online cards and stationery boutique that sells announcements, invitations, and personal stationery for every occasion; and cloud services under the Tiny Prints name. Further, it offers personalized save the dates, wedding invitations, thank you cards, and bridal invitations under the Wedding Paper Divas brand; and ThisLife, a service that gathers and organizes photos and videos.

Additionally, the company provides MyPublisher, which allows customers to create custom photo books, share memories, and tell their stories using their own photos; BorrowLenses, an online marketplace for photographic and video equipment rentals; and Groovebook, a mobile photo book application subscription service that sends customers a keepsake book of their mobile photos each month. 

Shares have formed a bearish "flag" after Amazon entered the photo printing and sharing business. The new service, named AmazonPrints, will reportedly offer printed photos for as little as $0.09 per picture, and higher-value offerings like photo books, calendars, and greeting cards either are available or will be in the near future. Given that Amazon already offers digital photo storage to users of its Amazon Prime service, the move into photo printing was a natural follow-on for the tech giant.

Lower share prices are expected for this stock.

 

52-Weeks Trading Range: $35.22 - $54.60

Last Trade: $44.11

Trade

  • Buy 1 October $45.00 Put at $2.40
  • For a net debit of $2.40

Profit/Loss Analysis

  • Breakeven at $42.60
  • Maximum profit is unbounded
  • Maximum loss is ($240.00) at strike of $45.00

Closing Summary

  • Sold 1 October $45.00 Put at $2.10

Position closed on 10/19/2016 at price of $2.10 with a -12.50% loss in 22 days.

Updates

10/19/2016 10:24:30 AM

SFLY put option sold at $2.10

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