Call Options on CARG on 11/25/2019

CarGurus, Inc. (CARG) operates an online automotive marketplace connecting buyers and sellers of new and used cars in the United States, Canada, the United Kingdom, Germany, Italy, and Spain.

The company provides consumers an online automotive marketplace where they can search for new and used car listings from its dealers, as well as sell their car in the United States marketplace.

Its marketplace connects dealers to a large audience of informed and engaged consumers.

On November 5th, Cargurus reported 3rd Quarter September 2019 earnings of $0.14 per share on revenue of $150.5 million. The consensus earnings estimate was $0.09 per share on revenue of $148.0 million. Revenue grew 26.4% on a year-over-year basis.

The company said it expects fourth quarter non-GAAP earnings of $0.12 to $0.13 per share on revenue of $152.2 million to $155.2 million. The current consensus earnings estimate is $0.13 per share on revenue of $154.7 million for the quarter ending December 31, 2019.

We expect shares to see a minor pullback, use the opportunity to establish a position. 

Last Trade: $39.60

Trading Range: $28.65 to $45.25

Trade Buy 1 December $40.00 Call at $1.00 For a net debit of $1.00 Profit/Loss Analysis Breakeven at $41.00 Maximum profit is unbounded Maximum loss is ($100.00) at strike of $40.00 Closing Summary Sold 1 December $40.00 Call at $0.00

Position closed on 12/20/2019 at price of $0.00 with a -100.00% loss in 25 days.

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