Put Spread on W on 5/16/2022

Wayfair Inc. (W) engages in the e-commerce business in the United States and internationally. 

The company provides approximately thirty-three million products for the home sector under various brands.

It offers online selections of furniture, décor, housewares, and home improvement products through its sites, including Wayfair, Joss & Main, AllModern, Birch Lane, and Perigold brands.

On May 5th, Wayfair (W) reported a 1st Quarter March 2022 loss of $2.02 per share on revenue of $3.0 billion. The consensus estimate was a loss of $1.58 per share on revenue of $3.0 billion.  Revenue fell 13.9% compared to the same quarter a year ago.

This stock was a darling during the Covid shutdown but now with country opening up and rising inflation and interest rates shaes have collapsed. It now has dropped below the $60 level. The decline is expected to continue. 

We will be trading June 10th Options

Last Trade: $58.00

Trading Range: $49.54 - $339.56

Trade Buy 1 June $60.00 Put at $7.70 Sell 1 June $45.00 Put at $2.00 For a net debit of $5.70 Profit/Loss Analysis Breakeven at $54.30 Maximum profit is $930.00 at strike of $45.00 Maximum loss is ($570.00) at strike of $60.00 Closing Summary Sold 1 June $60.00 Put at $8.50 Bought 1 June $45.00 Put at $0.00

Position closed on 6/10/2022 at price of $8.50 with a 49.12% gain in 25 days.

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