Put Options on MMS on 6/6/2022

Maximus, Inc. (MMS) provides business process services (BPS) to government health and human services programs. 

It operates through three segments: U.S. Services, U.S. Federal Services, and Outside the U.S.

The U.S. Services segment offers various BPS solutions, such as program administration, appeals and assessments, and related consulting works for U.S. state and local government programs, including the Affordable Care Act, Medicaid, the Children's Health Insurance Program, Temporary Assistance to Needy Families, child support programs, Preadmission Screening and Resident Reviews, and Independent Developmental Disability assessments.

The U.S. Federal Services segment offers centralized citizen engagement centers and support services; document and record management; case management, citizen support, and consumer education; independent medical reviews and worker's compensation benefit appeals; Medicare and Medicaid appeals; and federal marketplace eligibility appeals.

The Outside the U.S. segment offers BPS solutions for governments and commercial clients outside the United States, including health and disability assessments, program administration for employment services, and other job seeker-related services.

Shares have formed a bearish "flag" following the company's latest quarterly report. We expect the company to guide lower going forward.

We will trade July Put options

Last Trade: $63.78

52-Week Trading Range: $63.01 to $94.79

Trade Buy 1 July $65.00 Put at $2.50 For a net debit of $2.50 Profit/Loss Analysis Breakeven at $62.50 Maximum profit is unbounded Maximum loss is ($250.00) at strike of $65.00 Closing Summary Sold 1 July $65.00 Put at $5.90

Position closed on 6/29/2022 at price of $5.90 with a 136.00% gain in 23 days.

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