Put Options on MMSI on 9/16/2019

Merit Medical Systems, Inc. (MMSI) manufactures and markets disposable medical devices for interventional, diagnostic, and therapeutic procedures in cardiology, radiology, oncology, critical care, and endoscopy.

The company operates through Cardiovascular and Endoscopy segments. It provides peripheral intervention products, including access, angiography, intervention, and drainage and biopsy for diagnosis and treatment of diseases in peripheral vessels and organs; and cardiac intervention products, such as access, angiography, hemostasis, intervention, and electrophysiology and cardiac rhythm management products to treat various heart conditions.

The company also offers cardiovascular and critical care products to treat patients with life-threatening diseases, protect healthcare providers from exposure to bloodborne pathogens, and provide medical devices. In addition, it provides interventional oncology and spine products comprising delivery system, embolotherapy, spine ablation, and vertebral compression fracture products to treat metastatic spinal tumors, liver cancer, uterine fibroids, benign prostatic hyperplasia, vertebral compression fractures, and arteriovenous malformations and hemostatic embolization, as well as breast cancer localization and guidance products for the treatment of breast cancer. Further, the company offers non-vascular stents to treat pulmonary and gastrointestinal diseases; dilation balloons to endoscopically dilate strictures; and kits and accessories for endoscopy and bronchoscopy procedures.

Additionally, it provides coated tubes and wires; and microelectromechanical system sensor components. Shares have broken through all supports following its quarterly report. On July 26th, Merit Medical Sys (MMSI) reported 2nd Quarter June 2019 earnings of $0.42 per share on revenue of $255.5 million. The consensus earnings estimate was $0.50 per share on revenue of $258.9 million. 

The company said it expects 2019 earnings of $1.74 to $1.97 per share on revenue of $1.007 billion to $1.029 billion. The company's previous guidance was earnings of $1.97 to $2.08 per share on revenue of $1.011 billion to $1.03 billion and the current consensus earnings estimate is $2.02 per share on revenue of $1.02 billion for the year ending December 31, 2019.

We will be trading October Put options

Last Trade: $27.65

Trading Range: $25.67 to  $66.34

Trade Buy 1 October $30.00 Put at $2.50 For a net debit of $2.50 Profit/Loss Analysis Breakeven at $27.50 Maximum profit is unbounded Maximum loss is ($250.00) at strike of $30.00 Closing Summary Sold 1 October $30.00 Put at $0.00

Position closed on 10/18/2019 at price of $0.00 with a -100.00% loss in 32 days.

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