Call Spread on ACIA on 2/21/2017

Bullish Cup and Handle on ACIAAcacia Communications, Inc. (ACIA) provides high-speed coherent interconnect products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific region.

Its products include a series of low-power coherent digital signal processors and silicon photonic integrated circuits integrated into families of optical interconnect modules with transmission speeds ranging from 40 to 400 gigabits per second for use in long-haul, metro, and inter-data center markets. The company sells its products through a direct sales force to network equipment manufacturers. 

The Company's AC100-MSA product family contains approximately three modules that all support over 100 gigabits per second transmission speeds. The Company's AC100-MSA product family includes AC100-G, which is used in the long haul and metro markets; AC100-S, which is used in the subsea applications, and AC100-C, which is also used in the long haul and metro markets. The Company's AC100-CFP product family contains approximately three modules that support over 100 gigabits per second transmission speeds. The Company's AC100-CFP product family includes AC100-CFP-M, which is used in the metro and inter-data center markets; AC100-CFP-ZR, which is also used in the metro and inter-data center markets, and AC100-CFP-L, which is used in long haul applications. The Company's CFP2-ACO product family contains a single module that has an analog electrical interface and supports up to 200 gigabits per second transmission speeds.

The Company is schdeuled to report its quarterly results on February 23rd. Ahead of that shares have formed a bullish "cup and handle." Higher share prices are expected for this stock.

 

52-Weeks Trading Ragne: $27.05 - $128.73

Entry Price: $66.58

Trade

  • Buy 1 March $65.00 Call at $5.50
  • Sell 1 March $75.00 Call at $2.25
  • For a net debit of $3.25

Profit/Loss Analysis

  • Breakeven at $68.25
  • Maximum profit is $675.00 at strike of $75.00
  • Maximum loss is ($325.00) at strike of $65.00

Closing Summary

  • Sold 1 March $65.00 Call at $0.00
  • Bought 1 March $75.00 Call at $0.00

Position closed on 3/17/2017 at price of $0.00 with a -100.00% loss in 24 days.

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