Put Options on SIX on 1/22/2020

Six Flags Entertainment Corporation (SIX) owns and operates regional theme and water parks under the Six Flags name.

The company's parks offer various thrill rides, water attractions, themed areas, concerts and shows, restaurants, game venues, and retail outlets. It owns and operates 25 parks, including 22 parks in the United States; 2 parks in Mexico; and 1 park in Montreal, Canada. 

Shares of the company have formed a bearish "flag" after the company warned of lower earnings. The Company will report its quarterly results on February 13th. On October 22nd, Six Flags Entertainment (SIX) reported 3rd Quarter September 2019 earnings of $2.11 per share on revenue of $621.2 million. The consensus earnings estimate was $2.30 per share on revenue of $643.4 million. The Earnings Whisper number was $2.27 per share. Revenue grew 0.2% on a year-over-year basis. 

Lower share prices are expected.

Last Trade: $37.55

Trading Range: $35.06 to $64.28

Trade Buy 1 February $37.50 Put at $2.00 For a net debit of $2.00 Profit/Loss Analysis Maximum profit is unbounded Maximum loss is ($200.00) at strike of $38.00 Closing Summary Sold 1 February $37.50 Put at $0.00

Position closed on 2/14/2020 at price of $0.00 with a -100.00% loss in 23 days.

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