Best Stock on the Market

Put Options on GDOT on 8/12/2019

bearish flag on $GDOTGreen Dot Corporation (GDOT) operates as a financial technology and bank holding company in the United States.

It operates in two segments, Account Services, and Processing and Settlement Services.

The company offers deposit account programs, such network-branded reloadable prepaid debit cards under the consumer brand names of GPR cards, consumer and small business checking accounts, network-branded gift cards, secured credit cards, and other financial services.

It also provides swipe reload system for crediting cash onto an enabled payment card by swiping the payment card at the point-of-sale through Green Dot Network participating retailer; MoneyPak, a product that allows a consumer to add funds to accounts; and e-cash remittance, a service that allows a consumer to transfer funds to a smartphone, as well as offers disbursement services through Simply Paid platform.

In addition, the company offers prepaid cards, debit cards, payroll debit cards, consumer cash processing services, wage disbursements, and tax refund processing services, as well as issuing, settlement, and capital management services. Further, it provides mobile banking, loan disbursement accounts, mobile P2P, money transfer, instant payment, and processing and settlement services.

The company markets its products under the brand names of Green Dot, GoBank, MoneyPak, AccountNow, RushCard, and RapidPay. Green Dot Corporation markets and sells its products and services through retail stores, various direct-to-consumer Websites, corporate distribution partnerships, tax preparation companies and individual tax preparers, and apps, as well as distributes through ‘Banking as a Service' platform. 

Shares have formed a bearish "flag" following the company's latest quarterly report. On August 7th, Green Dot (GDOT) reported 2nd Quarter June 2019 earnings of $0.78 per share on revenue of $278.3 million. The consensus earnings estimate was $0.45 per share on revenue of $260.9 million. Revenue grew 7.7% on a year-over-year basis.

The company said it expects third quarter non-GAAP earnings of approximately $0.02 per share on revenue of $225.0 million to $230.0 million. The current consensus earnings estimate is $0.32 per share on revenue of $251.8 million for the quarter ending September 30, 2019. The company also said it now expects 2019 earnings of $2.71 to $2.77 per share on revenue of $1.06 billion to $1.08 billion. The company's previous guidance was earnings of $2.82 to $2.91 per share and continues to expect revenue of $1.114 billion to $1.134 billion and the current consensus earnings estimate is $2.87 per share on revenue of $1.11 billion for the year ending December 31, 2019.

 

We will be trading September Put Options.

 

Last Trade: $29.82

Trading Range: $24.19 to $93.00

Trade

  • Buy 1 September $30.00 Put at $2.30
  • For a net debit of $2.30

Profit/Loss Analysis

  • Breakeven at $27.70
  • Maximum profit is unbounded
  • Maximum loss is ($230.00) at strike of $30.00

Closing Summary

  • Sold 1 September $30.00 Put at $2.75

Position closed on 9/18/2019 at price of $2.75 with a 19.57% gain in 37 days.

Updates

9/18/2019 2:32:49 PM

GDOT $30 Septemer Put sold for $2.75

Back to Portfolio