Call Spread on SPLK on 6/28/2021

Splunk Inc. (SPLK) provides software and cloud solutions that deliver and operationalize insights from the data generated by digital systems in the United States and internationally.

The company offers Splunk Platform, a real-time data platform comprising collection, streaming, indexing, search, reporting, analysis, machine learning, alerting, monitoring, and data management capabilities. It also provides Splunk Solutions, such as Splunk Security solutions that enable cybersecurity teams streamline the security operations workflow, accelerate threat detection and response, enhance threat visibility, and scale resources to increase analyst productivity through machine learning and runbook-driven automation; Splunk IT Solutions that provide IT Operations teams visibility and control across cloud and on-premises environments; and Splunk Observability Solutions for building and maintaining infrastructure and applications.

In addition, the company offers Ecosystem Solutions, which includes pre-built data inputs, workflows, searches, reports, alerts, custom dashboards, flexible UI components, custom data visualizations, and integration actions and methods, as well as Splunk On-Call, Splunk Infrastructure Monitoring, and Splunk Phantom solutions, which provides APIs, SDKs, and other interfaces that enable its ecosystem, including third-party developers, partners, and customers to build content that configures and extends Splunk solutions to accommodate specific use cases.

Further, the company provides adoption and implementation services, education services, and maintenance and customer support services. It sells its offerings directly through field and inside sales, and indirectly through various routes to market with various partners.

Splunk reported a 1st Quarter April 2021 loss of $0.88 per share on revenue of $502.1 million. The consensus estimate was a loss of $0.70 per share on revenue of $491.3 million. Revenue grew 15.7% on a year-over-year basis.

The company said it expects second quarter revenue of $550.0 million to $570.0 million. The current consensus revenue estimate is $561.34 million for the quarter ending July 31, 2021.

After receiving a $1 billion investment from private equity firm, Silver Lake, this stock should be heading higher along its "bullish flag" formation.

We will be trading July 9th call spread.

Last Traded: $141.24

Trading Range: $110.28 - $225.89

Trade Buy 1 July $141.00 Call at $3.40 Sell 1 July $150.00 Call at $1.07 For a net debit of $2.33 Profit/Loss Analysis Breakeven at $143.33 Maximum profit is $667.00 at strike of $150.00 Maximum loss is ($233.00) at strike of $141.00 Closing Summary Sold 1 July $141.00 Call at $0.00 Bought 1 July $150.00 Call at $0.00

Position closed on 7/14/2021 at price of $0.00 with a -100.00% loss in 15 days.

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