Put Options on UBNT on 2/16/2017

Ubiquiti Networks, Inc. (UBNT) develops networking technology for service providers and enterprises worldwide.

The company's service provider product platforms offer carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems, and routing; and enterprise product platforms provide wireless LAN infrastructure, video surveillance products, switching and routing solutions, and machine-to-machine communication components.

Its products and solutions include radios, antennas, software, communications protocols, and management tools designed to deliver carrier and enterprise class wireless broadband access and other services in the unlicensed RF spectrum. The company also provides technology platforms, such as airMAX platform, which includes proprietary protocols that contain technologies for minimizing signal noise; EdgeMAX, a disruptive software and system routing platform; AirFiber, a point-to-point radio system; and sunMAX, an end-to-end plug and play solar solution. In addition, it offers UniFi Enterprise Wi-Fi System that includes Wi-Fi certified hardware with a software based management controller; UniFi Video IP cameras for data transmission and power-over-Ethernet; UniFi Switches that deliver performance, switching, and PoE+ support for enterprise networks; and UniFi Security Gateway that extends the UniFi enterprise solutions to provide routing and network security.

Further, the company provides mFi that consists of hardware sensors, power devices, and management software, which allow devices to be monitored and controlled remotely through Wi-Fi; and develops AmpliFi platform, a Wi-Fi system solution designed to serve connected home.

Shares have are falling a bearish flag formation after the company reported its results that disappointed investors. The company projected its gross margin will decline in the upcoming quarter and year.  For the current fiscal third quarter of 2017, Ubiquiti expects revenue between $210 million to $220 million, with adjusted earnings per diluted share of $0.73 to $0.79, below estimates of 78 cents. Lower share prices are expected. 

52-Weeks Trading Range: $31.13 - $64.62

Last Trade: $49.50

Trade Buy 1 March $50.00 Put at $1.85 For a net debit of $1.85 Profit/Loss Analysis Breakeven at $48.15 Maximum profit is unbounded Maximum loss is ($185.00) at strike of $50.00 Closing Summary Sold 1 March $50.00 Put at $0.00

Position closed on 3/17/2017 at price of $0.00 with a -100.00% loss in 29 days.

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