Put Options on TREE on 5/15/2023

LendingTree, Inc. (TREE) operates online consumer platform in the United States. 

It operates through three segments: Home, Consumer, and Insurance.

The Home segment offers purchase mortgage, refinance mortgage, reverse mortgage, and home equity loans; lines of credit; and real estate brokerage services.

The Consumer segment provides credit cards; personal, small business, student, and auto loans; deposit accounts; and other credit products, such as credit repair and debt settlement services.

The Insurance segment includes information, tools, and access to insurance quote products, including home and automobile, through which consumers are matched with insurance lead aggregators to obtain insurance offers. 

Shares have formed a bearish "flag" following it's earnings report. On May 2nd, TREE reported 1st Quarter March 2023 earnings of $0.32 per share on revenue of $200.5 million. The consensus estimate was a loss of $0.10 per share on revenue of $207.0 million. Revenue fell 29.2% compared to the same quarter a year ago.

The Company Warned: The company said it expects second quarter revenue of $190.0 million to $200.0 million and now expects 2023 revenue of $760.0 million to $800.0 million. The company's previous guidance was 2023 revenue of $935.0 million to $985.0 million. The current consensus revenue estimate is $244.27 million for the quarter ending June 30, 2023 and revenue of $945.60 million for the year ending December 31, 2023.

We will be trading June 16th Options

Last trade: $17.65

Trading Range: $16.02 to $70.59

Trade Buy 1 June $17.50 Put at $1.60 For a net debit of $1.60 Profit/Loss Analysis Breakeven at $15.90 Maximum profit is unbounded Maximum loss is ($160.00) at strike of $18.00 Closing Summary Sold 1 June $17.50 Put at $1.70

Position closed on 6/30/2023 at price of $1.70 with a 6.25% gain in 46 days.

Back to Portfolio