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Put Options on FAST on 4/19/2017

Bearish Flag on FASTFastenal Company (FAST) engages in the wholesale distribution of industrial and construction supplies in the United States, Canada, and internationally.

It offers fasteners, and other industrial and construction supplies primarily under the Fastenal name. The company’s fastener products include threaded fasteners, such as bolts, nuts, screws, studs, and related washers, which are used in manufactured products and building projects, as well as in the maintenance and repair of machines and structures. It also offers miscellaneous supplies and hardware, including various pins and machinery keys, concrete anchors, metal framing systems, wire ropes, strut products, rivets, and related accessories.

The company serves the manufacturing market comprising original equipment manufacturers, maintenance, repair, and operations; and non-residential construction market, which include general, electrical, plumbing, sheet metal, and road contractors. It also serves farmers, truckers, railroads, mining companies, schools, and retail trades; and oil exploration, production, and refinement companies, as well as federal, state, and local governmental entities.

The company distributes its products through a network of approximately 2,600 company owned stores. 

Shares have formed a bearish"flag" following the company's lastest quarterly report. Note that its peer, Grainger (GWW) also lowered its guidance going forward. It seems that the entire sector will remain under pressure. Notee that shares were upgraded this morning. Use the strength to buy put options.

 

52-Weeks Trading Range: $37.70 - $52.74

Last Trade: $44.95

Trade

  • Buy 1 May $50.00 Put at $1.30
  • For a net debit of $1.30

Profit/Loss Analysis

  • Breakeven at $48.70
  • Maximum profit is unbounded
  • Maximum loss is ($130.00) at strike of $50.00

Closing Summary

  • Sold 1 May $50.00 Put at $5.00

Position closed on 5/11/2017 at price of $5.00 with a 284.62% gain in 22 days.

Updates

5/11/2017 10:28:48 AM

FAST $50 Put options sold at $5.00

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