Put Options on IDCC on 8/22/2022

InterDigital, Inc. (IDCC) designs and develops technologies that enable and enhance wireless communications in the United States, China, South Korea, Japan, Taiwan, and Europe. 

It provides technology solutions for use in digital cellular and wireless products and networks, including 2G, 3G, 4G, 5G, and IEEE 802-related products and networks.

The company develops cellular technologies, such as technologies related to CDMA, TDMA, OFDM/OFDMA, and MIMO for use in 2G, 3G, 4G, and 5G wireless networks, as well as mobile terminal devices; and 3GPP technology portfolio in 5G NR, beyond 5G (B5G), extended reality over wireless, and cellular Internet of Things (IoT) areas.

Shares have formed a bearish "flag" following the company's latest quarterly report. On August 4th, IDCC reported 2nd Quarter June 2022 earnings of $0.69 per share on revenue of $124.7 million. The consensus earnings estimate was $0.58 per share on revenue of $117.5 million. Revenue grew 42.1% on a year-over-year basis.

The company warned it expects third quarter revenue of $96.0 million to $100.0 million. The current consensus revenue estimate is $102.05 million for the quarter ending September 30, 2022. Lower share prices are expected.

Last Trade: $54.92

Trading Range: $54.43 - $74.27

Trade Buy 1 September $55.00 Put at $1.90 For a net debit of $1.90 Profit/Loss Analysis Breakeven at $53.10 Maximum profit is unbounded Maximum loss is ($190.00) at strike of $55.00 Closing Summary Sold 1 September $55.00 Put at $5.00

Position closed on 9/8/2022 at price of $5.00 with a 163.16% gain in 17 days.

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