Put Options on AZZ on 7/18/2022

AZZ Inc. (AZZ) offers galvanizing and metal coating solutions, welding solutions, specialty electrical equipment, and engineered services to the power generation, transmission, distribution, refining, and industrial markets in the United States and internationally. 

The company operates through two segments, Infrastructure Solutions and Metal Coatings.

The Metal Coatings segment offers metal finishing solutions for corrosion protection, including hot-dip galvanizing, spin galvanizing, powder coating, anodizing, and plating to the steel fabrication and other industries. 

The Infrastructure Solutions segment provides products and services to support industrial and electrical applications. It offers custom switchgear, electrical enclosures, medium and high voltage bus ducts, explosion proof and hazardous duty lighting, and tubular products, as well as solutions and engineering resources to multi-national companies. 

On July 11th, AZZ reported 1st Quarter May 2022 earnings of $1.40 per share on revenue of $314.4 million. The consensus earnings estimate was $1.03 per share on revenue of $268.1 million. Revenue grew 36.8% on a year-over-year basis. Despite the beat, shares sold off and fell below the $40 support level. 

We will be trading August Put option

Last trade: $39.65

Trading Range: $38.00 to $58.59

Trade Buy 1 August $40.00 Put at $1.90 For a net debit of $1.90 Profit/Loss Analysis Breakeven at $38.10 Maximum profit is unbounded Maximum loss is ($190.00) at strike of $40.00 Closing Summary Sold 1 August $40.00 Put at $0.00

Position closed on 8/26/2022 at price of $0.00 with a -100.00% loss in 39 days.

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