Put Options on SMTC on 9/12/2022

Semtech Corp (SMTC) designs, develops and markets semicondutor products for commercial applications, the majority of which are sold into the enterprise computing, communications, high-end consumer and industrial end-markets. 

On August 31st, Semtech reported 2nd Quarter July 2022 earnings of $0.88 per share on revenue of $209.3 million. The consensus earnings estimate was $0.85 per share on revenue of $208.3 million. Revenue grew 13.1% on a year-over-year basis.

The company warned it expects third quarter earnings of $0.60 to $0.66 per share on revenue of $170.0 million to $180.0 million. The consensus earnings estimate was $0.73 per share on revenue of $215.61 million for the quarter ending October 31, 2022.

Since the earnings report, shares have formed a bearish "flag" and are on the cusp of moving lower.

Last Trade: $34.82

52-Week Range: $29.52 to $94.91

Trade Buy 1 October $35.00 Put at $2.25 For a net debit of $2.25 Profit/Loss Analysis Breakeven at $32.75 Maximum profit is unbounded Maximum loss is ($225.00) at strike of $35.00 Closing Summary Sold 1 October $35.00 Put at $5.50

Position closed on 9/27/2022 at price of $5.50 with a 144.44% gain in 15 days.

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