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Call Options on VG on 11/9/2020

bullish flag $VGVonage Holdings Corp. (VG) provides cloud communications services for businesses and consumers.

It operates through two segments, Business and Consumer. The Business segment offers cloud-based applications comprising integrated voice, text, video, data, collaboration, and mobile applications over SIP based VoIP network; API solutions designed to enhance the way businesses communicate with their customers by embedding communications into apps, websites, and business processes; and Vonage Business Cloud and Vonage Enterprise services.

The Consumer segment provides home telephone services through various service plans with basic features, including voicemail, call waiting, call forwarding, simulring, visual voicemail, and extensions, as well as area code selection, virtual phone number, and Web-enabled voicemail. It also offers Vonage World and Vonage North America consumer plans.

In addition, the company provides Vonage-enabled devices, which allow customers to use the Internet connection for their computer and telephones at the same time; and high-speed broadband Internet service that allows calls over the Internet either from a telephone through a Vonage-enabled device, or through soft phone software, or mobile client applications. Vonage Holdings Corp. sells its products through its sales agents, Websites, and toll free numbers for consumers and businesses in the United States, Canada, the United Kingdom, the European Union, and Asia.

Shares have formed a bullish "flag" following its recent earnings report on November 5th. Vonage  reported 3rd Quarter September 2020 earnings of $0.07 per share on revenue of $316.6 million. The consensus earnings estimate was $0.03 per share on revenue of $308.6 million. Revenue grew 4.7% on a year-over-year basis. Shares are expected to move higher.

 

Entry Point: $12.70

Trading Range: $4.18 - $13.24

Trade

  • Buy 1 December $12.00 Call at $1.15
  • For a net debit of $1.15

Profit/Loss Analysis

  • Breakeven at $13.15
  • Maximum profit is unbounded
  • Maximum loss is ($115.00) at strike of $12.00

Closing Summary

  • Sold 1 December $12.00 Call at $1.50

Position closed on 12/17/2020 at price of $1.50 with a 30.43% gain in 38 days.

Updates

12/17/2020 1:15:53 PM

$12 Call Options closed at $1.50

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