Best Stock on the Market

Put Options on OTEX on 9/6/2022

Open Text Corporation (OTEX) engages in the designs, develops, markets, and sells information management software and solutions.  Stockwinners

It offers content services; business network that manages data within the organization and outside the firewall; security and protection solutions for defending against cyber threats, and preparing for business continuity and response in the event of a breach; digital investigation and forensic security solutions; OpenText security solutions to address information cyber resilience needs; Carbonite and Webroot products; and OpenText Information Management software platform.

The company also provides eDiscovery platform that provides forensics and unstructured data analytics; OpenText Developer Cloud; key developer API services; AI and analytics that leverages structured or unstructured data; digital process automation solutions, which enables organizations to transform into digital data-driven businesses; and OpenText Digital Experience platform.

In addition, it offers customer support programs, including access to software upgrades, a knowledge base, discussions, product information, and an online mechanism to post and review trouble tickets; and consulting and learning services relating to the implementation, training, and integration of its licensed product offerings, as well as cloud services. 

Shares have formed a bearish "flag" following the company's latest quarterly report.  On August 4th, Open Text reported Quarter June 2022 earnings of $0.73 per share on revenue of $902.5 million. The consensus earnings estimate was $0.75 per share on revenue of $1.2 billion. Lower share prices are expected. 

 

Last Trade: $29.77

Trading Range: $29.68 to $54.74

Trade

  • Buy 1 October $50.00 Put at $1.50
  • For a net debit of $1.50

Profit/Loss Analysis

  • Breakeven at $48.50
  • Maximum profit is unbounded
  • Maximum loss is ($150.00) at strike of $50.00

Closing Summary

  • Sold 1 October $50.00 Put at $6.40

Position closed on 9/23/2022 at price of $6.40 with a 326.67% gain in 17 days.

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