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Put Options on HLF on 5/13/2019

broken support $HLFHerbalife Nutrition Ltd. (HLF) develops and sells nutrition solutions in North America, Mexico, South and Central America, Europe, the Middle East, Africa, and the Asia Pacific.

It provides science-based products in the areas of weight management; targeted nutrition; energy, sports, and fitness; and outer nutrition.

The company offers weight management products, including meal replacement products, protein shakes, drink mixes, weight loss enhancers, and healthy snacks; targeted nutrition products comprising dietary and nutritional supplements that contain herbs, vitamins, minerals, and other natural ingredients; outer nutrition products consisting of facial skin, body, and hair care products; and energy, sports, and fitness products, such as N-R-G tea and energy drink products.

It also provides literature, promotional, and other materials, including start-up kits, sales tools, and educational materials.

The company offers its products through own retail stores, as well as through independent service providers, sales representatives, and sales officers. Shares have fallen to the a new low after the company missed its quarterly results. 

On May 2, it reported 1st Quarter March 2019 earnings of $0.66 per share on revenue of $1.2 billion. The consensus earnings estimate was $0.67 per share. The company said it expects second quarter earnings of $0.65 to $0.80 per share and 2019 earnings of $2.50 to $2.95 per share. The company's previous guidance was 2019 earnings of $2.90 to $3.32 per share. The consensus earnings estimate was $0.92 per share for the quarter ending June 30, 2019 and $3.17 per share for the year ending December 31, 2019. 

We will be trading June 21 put options

 

Last Trade: $48.14

Trading Range: $47.47 to $61.77

Trade

  • Buy 1 June $47.50 Put at $1.35
  • For a net debit of $1.35

Profit/Loss Analysis

  • Breakeven at $46.15
  • Maximum profit is unbounded
  • Maximum loss is ($135.00) at strike of $48.00

Closing Summary

  • Sold 1 June $47.50 Put at $6.00

Position closed on 6/3/2019 at price of $6.00 with a 344.44% gain in 21 days.

Updates

6/3/2019 9:48:52 AM

HLF put options closed at $6.00

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