Put Options on CUDA on 4/24/2017

Bearish Flag on CUDABarracuda Networks, Inc. (CUDA) designs and delivers security and data protection solutions.

The company offers cloud-enabled solutions that enable customers address security threats, improve network performance, and protect and store their data. It provides various security solutions, including Barracuda Email Security, an email security service with spam and virus blocking, anti-phishing, fraud detection, advanced threat detection, denial-of-service prevention, email continuity, and encryption and policy management; and Barracuda Web Security Gateway, a solution to protect users from Web-based threats.

The company's security solutions also comprise Barracuda NextGen Firewalls to secure the network and optimize traffic flows; Barracuda Web Application Firewall to protect Web applications and websites from data breaches and downtime; and Barracuda Load Balancer ADC to optimize application performance, availability, and security, as well as various remote access solutions.

In addition, it offers data protection solutions, such as Barracuda Backup, a backup solution; Barracuda Message Archiver, a data archival solution; and CudaSign, an eSignature platform. The company sells its appliances, services, and software products to education, government, financial services, healthcare, professional services, telecommunications, retail, and manufacturing industries through its sales personnel, distribution partners, and value added resellers in approximately 100 countries.

Shares have formed a bearish "flag" following the company's latest quarterly report. Shares are expected to move lower out of this formation. 

We will be trading May 19th Put Options. 

52-Weeks Trading Range: $13.91 - $26.69

Last Trade: $20.14

Trade

  • Buy 1 May $20.00 Put at $0.70
  • For a net debit of $0.70

Profit/Loss Analysis

  • Breakeven at $19.30
  • Maximum profit is unbounded
  • Maximum loss is ($70.00) at strike of $20.00

Closing Summary

  • Sold 1 May $20.00 Put at $0.00

Position closed on 5/19/2017 at price of $0.00 with a -100.00% loss in 25 days.

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