Call Options on TPX on 11/4/2019

Tempur Sealy International, Inc. (TPX) develops, manufactures, markets, and distributes bedding products.

The company operates through two segments, North America and International.

It provides mattresses, foundations and adjustable foundations, and adjustable bases, as well as other products comprising pillows, mattress covers, sheets, cushions, and various other accessories and comfort products under the TEMPUR, Tempur-Pedic, Sealy, and Stearns & Foster brands.

The company sells its products through third party retailers, including third party distribution, hospitality, and healthcare; and company-owned stores, e-commerce, and call centers, as well as offers Cocoon by Sealy branded products through online.

It is also involved in licensing its Sealy, and Stearns & Foster brands, technology, and trademarks to other manufacturers. 

Shares have formed a bullish "flag" following the company's latest quarterly report. On October 31, it reported 3rd Quarter September 2019 earnings of $1.30 per share on revenue of $821.0 million. The consensus earnings estimate was $1.13 per share on revenue of $794.1 million. Revenue grew 12.5% on a year-over-year basis.

The company said it now expects 2019 Adjusted EBITDA of $485.0 million to $500.0 million. The company's previous guidance was Adjusted EBITDA of $450.0 million to $480.0 million for the year ending December 31, 2019.

Last Trade: $89.35

Trading Range: $38.90 to $92.33

Trade Buy 1 November $90.00 Call at $1.75 For a net debit of $1.75 Profit/Loss Analysis Breakeven at $91.75 Maximum profit is unbounded Maximum loss is ($175.00) at strike of $90.00 Closing Summary Sold 1 November $90.00 Call at $0.00

Position closed on 11/22/2019 at price of $0.00 with a -100.00% loss in 18 days.

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