Best Stock on the Market

Put Options on WU on 1/26/2017

Bearish Flag on WUThe Western Union Company (WU) provides money movement and payment services worldwide.

The company operates in three segments: Consumer-to-Consumer, Consumer-to-Business, and Business Solutions.

The Consumer-to-Consumer segment offers money transfer services. This segment provides various options for sending funds, including walk-in and online money transfer, as well as account based money transfer services through a network of third-party agents using multi-currency and real-time money transfer processing systems.

The Consumer-to-Business segment offers options to make one-time or recurring payments from consumers to businesses and other organizations, including utilities, auto finance companies, mortgage servicers, financial service providers, government agencies, and other businesses. It also provides various products, which provide consumers choices as to the payment channel and method of payment, including Speedpay, Pago Fácil, and Western Union Payments. This segment offers its services primarily through the phone and Online, as well as through its agent networks and selected company-owned locations.

The Business Solutions segment facilitates payment and foreign exchange solutions, primarily cross-border and cross-currency transactions for small and medium size enterprises and other organizations, as well as for individuals. This segment provides its services through the phone, partner channels, and the Internet. 

Shares have formed a bearish "flag" after the firm admitted to fraud and paid $586 million in fine and admitted "to aiding and abetting wire fraud" by allowing scammers to process transactions, even when the company realized its agents were helping scammers avoid detection. Lower share prices are expected for this stock.

 

52-Weeks Trading Range: $16.23 - $22.70

Last Trade: $20.08

Trade

  • Buy 1 February $20.00 Put at $0.55
  • For a net debit of $0.55

Profit/Loss Analysis

  • Breakeven at $19.45
  • Maximum profit is unbounded
  • Maximum loss is ($55.00) at strike of $20.00

Closing Summary

  • Sold 1 February $20.00 Put at $0.55

Position closed on 2/16/2017 at price of $0.55 with a 0.00% gain in 21 days.

Updates

2/16/2017 11:43:46 AM

WU $20 Feb 17 Put option closed at $0.55

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