Put Spread on NSC on 3/27/2023

Norfolk Southern Corporation (NSC) engages in the rail transportation of raw materials, intermediate products, and finished goods in the United States.

The company transports agriculture, forest, and consumer products comprising soybeans, wheat, corn, fertilizers, livestock and poultry feed, food products, food oils, flour, sweeteners, ethanol, lumber and wood products, pulp board and paper products, wood fibers, wood pulp, beverages, and canned goods; chemicals consist of sulfur and related chemicals, petroleum products comprising crude oil, chlorine and bleaching compounds, plastics, rubber, industrial chemicals, chemical wastes, sand, and natural gas liquids; metals and construction materials, such as steel, aluminum products, machinery, scrap metals, cement, aggregates, minerals, clay, transportation equipment, and military-related products; and automotive, including finished motor vehicles and automotive parts, as well as coal.

It also transports overseas freight through various Atlantic and Gulf Coast ports; provides commuter rail passenger transportation services; and operates an intermodal network. 

Shares have fallen below a support level around the $200-$205 band. Reason for the decline has been several deadly recent accidents. Lower share prices are expected. 

We will be trading April 21 Put options

Last Trade: $200.26

Trading Range: $196.33 to $291.55 

Trade Buy 1 April $200.00 Put at $6.30 Sell 1 April $185.00 Put at $2.75 For a net debit of $3.55 Profit/Loss Analysis Breakeven at $196.45 Maximum profit is $1,145.00 at strike of $185.00 Maximum loss is ($355.00) at strike of $200.00 Closing Summary Sold 1 April $200.00 Put at $0.00 Bought 1 April $185.00 Put at $0.00

Position closed on 4/21/2023 at price of $0.00 with a -100.00% loss in 25 days.

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