Best Stock on the Market

Put Options on SABR on 2/9/2017

Bearish Flag on SABRSabre Corporation (SABR) provides technology solutions to the travel and tourism industry.

The company operates through two segments, Travel Network, and Airline and Hospitality Solutions.

The Travel Network segment operates a business-to-business travel marketplace that offers travel content, such as inventory, prices, and availability from a range of travel suppliers, including airlines, hotels, car rental brands, rail carriers, cruise lines, and tour operators with a network of travel buyers comprising online and offline travel agencies, travel management companies, and corporate travel departments.

The Airline and Hospitality Solutions segment offers a portfolio of software technology products and solutions through software-as-a-service and hosted delivery models to airlines, hotel properties, and other travel suppliers. This segment provides SabreSonic Customer Sales & Service, a reservation system that provides capabilities around managing sales and customer service across an airline’s diverse touch points; Sabre AirVision Marketing & Planning, a set of airline commercial planning solutions; and Sabre AirCentre Enterprise Operations, a set of solutions for the holistic planning and management of airline, airport, and customer operations.

In addition, this segment offers software and solutions to hotel properties comprising central reservation system, property management solution, and marketing and consulting services.

Shares have formed a bearish "flag" following its disappointing results. Quarterly revenue climbed 9.4% year over year, to $829.6 million, and translated to adjusted net income of $0.27 per share. Analysts, on average, were looking for revenue of $827.1 million but higher adjusted earnings of $0.31 per share. For the full year of 2017, Sabre expects revenue of $3.54 billion to $3.62 billion, or year-over-year growth of 5% to 7%, and adjusted earnings per share of $1.31 to $1.45, below the $1.59 expected. Lower share prices are expected for this stock.

 

52-Weeks Trading Range: $21.42 - $29.76

Last Trade: $21.82

Trade

  • Buy 1 March $22.50 Put at $1.00
  • For a net debit of $1.00

Profit/Loss Analysis

  • Maximum profit is unbounded
  • Maximum loss is ($100.00) at strike of $23.00

Closing Summary

  • Sold 1 March $22.50 Put at $1.00

Position closed on 3/17/2017 at price of $1.00 with a 0.00% gain in 35 days.

Updates

3/17/2017 9:36:57 AM

SABR $22.5 Put options sold at $1.00

Back to Portfolio