Put Options on M on 1/14/2019

Macy's, Inc. (M) operates stores, Websites, and mobile applications.

The company sells a range of merchandise, such as apparel and accessories for men, women, and children; cosmetics; home furnishings; and other consumer goods.

As of April 4, 2018, it operated approximately 690 department stores under the Macy's and Bloomingdale's brands; 160 specialty stores under the Bloomingdale's The Outlet, Bluemercury, and Macy's Backstage brands in the District of Columbia, Guam, and Puerto Rico; and Websites, including macys.com, bloomingdales.com, and bluemercury.com. The company also operates as a beauty products and spa retailer. 

Shares have formed a bearish "flag" after the company reported disappointing Holiday sales. Based on this disappointing sales result, Macy's reduced its full-year outlook for comp sales growth to 2%. Additionally, it will have to take greater markdowns this month to clear out excess inventory. As a result, Macy's now expects gross margin to decline slightly on an annual basis -- compared to its previous forecast for a small increase. We expect lower share prices for this stock.

We will be trading February 15th Put Options

Last trade: $25.42

Trading Range: $22.47 - $41.99

Trade Buy 1 February $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 February $25.00 Put at $0.10

Position closed on 2/15/2019 at price of $0.10 with a -90.00% loss in 32 days.

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