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Put Options on PDCO on 8/26/2019

downward trading channel, $PDCOPatterson Companies (PDCO) distributes and sells dental and animal health products in the United States, the United Kingdom, and Canada.

It operates through Dental and Animal Health segments. The Dental segment offers consumable products, including infection control, restorative materials, hand instruments, and sterilization products; basic and advanced technology dental equipment; technology solutions, such as practice management software and e-commerce solutions; patient education systems; and office forms and stationery.

It also provides a range of related services comprising software and design services, maintenance and repair, and equipment financing services.

The Animal Health segment distributes pharmaceuticals, vaccines, parasiticides, diagnostics, prescription and non-prescription diets, nutritionals, consumable supplies, equipment, and software, as well as value-added services. It also provides private label portfolio of products to veterinarians, producers, and retailers under the Aspen, First Companion, and Patterson Veterinary brands.

The company serves dentists, laboratories, institutions, other healthcare professionals, veterinarians, other animal health professionals, production animal operators, and animal health product retailers. 

On June 27, Patterson reported Quarter April 2019 earnings of $0.37 per share on revenue of $1.4 billion. The consensus earnings estimate was $0.40 per share on revenue of $1.4 billion.  Revenue grew 2.6% on a year-over-year basis.

The company said it expects fiscal 2020 earnings of $1.33 to $1.43 per share. The current consensus earnings estimate is $1.53 per share for the year ending April 30, 2020.

Lower share prices are expected for this stock. 

 

Last Trade: $16.55

Trading Range: $16.40 to $26.60

Trade

  • Buy 1 September $17.00 Put at $1.10
  • For a net debit of $1.10

Profit/Loss Analysis

  • Breakeven at $15.90
  • Maximum profit is unbounded
  • Maximum loss is ($110.00) at strike of $17.00

Closing Summary

  • Sold 1 September $17.00 Put at $1.10

Position closed on 10/7/2019 at price of $1.10 with a 0.00% gain in 42 days.

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