Put Options on ARRS on 2/27/2017

ARRIS International plc (ARRS) provides media entertainment and data communications solutions in the United States and internationally.

It operates through two segments, Customer Premises Equipment and Network & Cloud.

The Customer Premises Equipment segment offers various product solutions, including set-top boxes, gateways, digital subscriber lines and cable modems, and embedded multimedia terminal adapters and voice/data modems that enable service providers to offer voice, video, and high-speed data services to residential and business subscribers.

The Network & Cloud segment provides cable modem termination system, converged cable access platform, multichannel video programming distributors, programmer equipment, Ad insertion technologies, and equipment in the ground or on transmission poles, as well as equipment used to initiate the distribution of content-carrying signals. This segment also offers technical support, professional services, and systems integration capabilities; software products that enable providers to deliver user experiences; multiscreen recommendations, offer management, and advertising services; network management products that collect information from the broadband network; and workforce management solutions enabling service providers to efficiently manage and dispatch field technicians, as well as network surveillance and issue correlation software and services.

Shares have formed a bearish "flag" following the company's recent earnings report. Although the earnings were fine but the outlook going forward sent shares lower. ARRIS now expects earnings (adjusted) in the range of 36 –40 cents in the first quarter of 2017. Moreover, revenues are expected in the range of $1.44–$1.49 billion. The Consensus Estimate for the first quarter stands at 60 cents on revenues of $1.65 billion. Lower share prices are expected.

52-Weeks Trading Range: $20.05 - $31.52

Lasst Trade: $25.92

Trade Buy 1 April $25.00 Put at $0.75 For a net debit of $0.75 Profit/Loss Analysis Breakeven at $24.25 Maximum profit is unbounded Maximum loss is ($75.00) at strike of $25.00 Closing Summary Sold 1 April $25.00 Put at $0.00

Position closed on 4/21/2017 at price of $0.00 with a -100.00% loss in 52 days.

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