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Put Options on WMGI on 8/19/2019

bearish flag, $WMGIWright Medical Group N.V. (WMGI) is a medical device company.

The firm designs, manufactures, markets, and sells upper and lower extremities, and biologics products in the United States, Europe, the Middle East, Africa, Canada, Asia, Australia, and Latin America.

The company offers joint implants and bone fixation devices for the shoulder, elbow, wrist, hand, foot, and ankle; and biologics products that are used for supporting the treatment of damaged or diseased bones, tendons, and soft tissues, as well as to stimulate bone growth. It also provides sports medicines and other products to mechanically repair tissue-to-tissue or tissue-to-bone injuries, as well as other ancillary products. The company primarily offers its products to orthopedic, trauma, and podiatric surgeons.

It markets and sells its products through direct sales representatives, independent sales agencies, direct sales offices, and distributors.

Shares have formed a bearish "flag" following its recent quarterly report. The Company reported 2nd Quarter June 2019 earnings of $0.02 per share on revenue of $229.7 million. The consensus earnings estimate was $0.01 per share on revenue of $233.5 million. 

The company said it expects 2019 earnings of $0.15 to $0.20 per share on revenue of $925.0 million to $930.0 million. The company's previous guidance was earnings of $0.17 to $0.25 per share on revenue of $954.0 million to $966.0 million and the current consensus earnings estimate is $0.22 per share on revenue of $962.1 million for the year ending December 31, 2019. Lower share prices are expected for this stock.

 

We will be trading September 20th options

 

Last Trade: $21.25

Trading Range: $20.46 to $32.86

Trade

  • Buy 1 September $22.50 Put at $1.40
  • For a net debit of $1.40

Profit/Loss Analysis

  • Breakeven at $21.10
  • Maximum profit is unbounded
  • Maximum loss is ($140.00) at strike of $23.00

Closing Summary

  • Sold 1 September $22.50 Put at $1.77

Position closed on 9/18/2019 at price of $1.77 with a 26.43% gain in 30 days.

Updates

9/18/2019 2:38:58 PM

WMGI $22.5 put option sold at $1.77

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