Put Options on SEE on 9/19/2022

Sealed Air Corporation (SEE) provides food safety and security, and product protection solutions and equipment in North America, South America, Europe, the Middle East, Africa, and the Asia Pacific. 

It operates through two segments, Food and Protective.

The Food segment offers integrated packaging materials and automation equipment solutions to provide food safety and shelf life extension, reduce food waste, automate processes, and optimize total cost for food processors in the fresh red meat, smoked and processed meats, poultry, seafood, plant-based, and dairy markets under the CRYOVAC, CRYOVAC Grip & Tear, CRYOVAC Darfresh, Simple Steps, and Optidure brands. 

The Protective segment provides foam, inflatable, suspension and retention, temperature assurance packaging solutions to protect goods to e-commerce, consumer goods, pharmaceutical and medical devices, and industrial manufacturing markets under the SEALED AIR, BUBBLE WRAP, AUTOBAG, SEALED AIR, AUTOBAG, Instapak, Korrvu, Kevothermal, and TempGuard brands.

Shares have fallen through all support levels after company guided lower. The company said it continues to expect 2022 earnings of $4.05 to $4.20 per share on revenue of $5.85 billion to $6.05 billion. The current consensus earnings estimate is $4.13 per share on revenue of $5.93 billion for the year ending December 31, 2022. We expect shares to continue to move lower. 

Entry Point: $48.65

Trading Range: $47.89 to 70.725

Trade Buy 1 October $50.00 Put at $2.55 For a net debit of $2.55 Profit/Loss Analysis Breakeven at $47.45 Maximum profit is unbounded Maximum loss is ($255.00) at strike of $50.00 Closing Summary Sold 1 October $50.00 Put at $5.75

Position closed on 9/27/2022 at price of $5.75 with a 125.49% gain in 8 days.

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