Put Options on PPL on 10/10/2016

PPL Corporation (PPL) delivers electricity and natural gas in the United States and the United Kingdom.

It serves 322,000 natural gas and 403,000 electric customers in Louisville and adjacent areas in Kentucky; 543,000 customers in central, southeastern, and western Kentucky; and approximately 28,000 customers in 5 counties in southwestern Virginia, and fewer than 10 customers in Tennessee.

The company also provides electric delivery services to approximately 1.4 million customers in Pennsylvania; and operates 4 electricity distribution networks in the United Kingdom, as well as delivers natural gas to customers in Kentucky; generates electricity from power plants in Kentucky; and sells wholesale electricity to 11 municipalities in Kentucky.

In addition, it provides finance for the operations of PPL and subsidiaries.

Shares have formed bearish "flag" following the collapse of British Pound on Brexit. The firm derives more than 65% of its total earnings from its UK operations. The firm lowered its earnings forecast last month. Since then shares have continued their decline. We expect the company may cut its dividend further. Lower share prices are expected for this stock.

52-Weeks Trading Range: $32.08 - $39.92

Last Trade: $32.25

We will be trading November 2016 Options

Trade Buy 1 November $33.00 Put at $1.15 For a net debit of $1.15 Profit/Loss Analysis Breakeven at $31.85 Maximum profit is unbounded Maximum loss is ($115.00) at strike of $33.00 Closing Summary Sold 1 November $33.00 Put at $0.30

Position closed on 11/18/2016 at price of $0.30 with a -73.91% loss in 39 days.

Updates

11/18/2016 10:51:50 AM

PPL $33 Put Options closed at $0.30.

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