Call Options on AN on 9/27/2021

AutoNation, Inc. (AN), through its subsidiaries, operates as an automotive retailer in the United States. 

The company operates through three segments: Domestic, Import, and Premium Luxury. It offers a range of automotive products and services, including new and used vehicles; and parts and services, such as automotive repair and maintenance, and wholesale parts and collision services.

The company also provides automotive finance and insurance products comprising vehicle services and other protection products, as well as arranges finance for vehicle purchases through third-party finance sources. As of December 31, 2020, it owned and operated 315 new vehicle franchises from 230 stores located primarily in metropolitan markets in the Sunbelt region.

The company also owned and operated 74 AutoNation-branded collision centers, 5 AutoNation USA used vehicle stores, 4 AutoNation-branded automotive auction operations, and 3 parts distribution centers.

Autonation (AN) reported 2nd Quarter June 2021 earnings of $4.83 per share on revenue of $7.0 billion. The consensus earnings estimate was $2.85 per share on revenue of $6.0 billion.  Revenue grew 53.9% on a year-over-year basis. The Company is expected to report on October 18th. Ahead of that, the stock has formed a bullish "cup and handle"  Higher share prices are expected. 

We will be trading October 15th Call Options.

Entry Point: $123.82

 Trading Range: $50.55 to $128.00

Trade Buy 1 October $120.00 Call at $6.00 For a net debit of $6.00 Profit/Loss Analysis Breakeven at $126.00 Maximum profit is unbounded Maximum loss is ($600.00) at strike of $120.00 Closing Summary Sold 1 October $120.00 Call at $0.00

Position closed on 10/15/2021 at price of $0.00 with a -100.00% loss in 18 days.

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