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Put Options on FNSR on 4/12/2017

Bearish Flag on FNSRFinisar Corporation (FNSR) provides optical subsystems and components for data communication and telecommunication applications in the United States, Malaysia, China, and internationally.

Its optical subsystems primarily consist of transmitters, receivers, transceivers, transponders, and active optical cables that provide the fundamental optical-electrical or optoelectronic interface for interconnecting the electronic equipment used in communication networks, including the switches, routers, and servers used in wireline networks, as well as the antennas and base stations used in wireless networks.

The company also offers wavelength selective switches, which are used to switch network traffic from one optical fiber to multiple other fibers without converting to an electronic signal.

In addition, it provides optical components comprising packaged lasers, receivers, and photodetectors for data communication and telecommunication applications; and passive optical components for telecommunication applications.

Finisar Corporation markets its products through its direct sales force, as well as through a network of distributors and manufacturers’ representatives to the original equipment manufacturers of storage systems, networking equipment, and telecommunication equipment, as well as to their contract manufacturers.

Shares have formed a bearish"flag" following the company's 3rd quarterly report in March. Estimates called for a profit of 62 cents per share and revenue of $389.55M, it reported 59 cents and $380M, respectively. Shares have now dropped below their 200-day moving average.

 

52-Weeks Trading Range: $15.21 - $36.85

Last Trade: $24.22

 

We will be trading May 19th Put Options.

Trade

  • Buy 1 May $25.00 Put at $1.00
  • For a net debit of $1.00

Profit/Loss Analysis

  • Breakeven at $24.00
  • Maximum profit is unbounded
  • Maximum loss is ($100.00) at strike of $25.00

Closing Summary

  • Sold 1 May $25.00 Put at $3.00

Position closed on 4/19/2017 at price of $3.00 with a 200.00% gain in 7 days.

Updates

4/19/2017 9:41:22 AM

We are taking profits on FNSR $25 Put options. Closed at $3.00

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