Best Stock on the Market

Put Options on XRAY on 4/25/2022

DENTSPLY SIRONA Inc. (XRAY) designs, develops, manufactures, distributes, and sells various dental products and technologies for professional dental market worldwide. Bearish Flag

It offers dental equipment, including treatment centers, imaging equipment, motorized dental handpieces, and other instruments; imaging equipment; treatment centers comprising basic dentist chairs, sophisticated chair-based units with integrated diagnostic, hygiene and ergonomic functionalities, and specialist centers; and lab equipment, such as amalgamators, mixing machines, and porcelain furnaces.

In addition, it offers endodontic products comprising endodontic instruments and materials, drills, filers, sealers, irrigation needles, and other tools or single-use solutions; restorative products that include dental prosthetics, such as artificial teeth, dental ceramics, digital dentures, precious metal dental alloys, and crown and bridge porcelain products; small equipment products comprise intraoral curing light systems, dental diagnostic systems, and ultrasonic scalers and polishers; and dental supplies, including dental anesthetics, prophylaxis paste, dental sealants, impression materials, teeth whiteners, and topical fluoride.

Shares have formed a bearish "flag" after the dental products maker said it "terminated" Chief Executive Donald Casey, and warned of a first-quarter earnings shortfall. The company said it expects net earnings per share of 26 cents to 30 cents, down from 53 cents a year ago. Adjusted EPS is expected to be 48 cents to 52 cents, below the consensus of 67 cents, while sales are expected to be approximately $965 million, below expectations of $1.02 billion. Lower share prices are expeced for this stock. Company reports May 5th.

Last Trade: $41.25

Trading Range: $40.65 - $69.54

Trade

  • Buy 1 May $40.00 Put at $1.25
  • For a net debit of $1.25

Profit/Loss Analysis

  • Breakeven at $38.75
  • Maximum profit is unbounded
  • Maximum loss is ($125.00) at strike of $40.00

Closing Summary

  • Sold 1 May $40.00 Put at $4.50

Position closed on 5/10/2022 at price of $4.50 with a 260.00% gain in 15 days.

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