Call Spread on FND on 6/20/2023

Floor & Decor Holdings, Inc. (FND) together with its subsidiaries, operates as a multi-channel specialty retailer and commercial flooring distributor in Georgia. 

The company offers tile, wood, laminate, vinyl, and natural stone flooring products, as well as decorative accessories, wall tiles, and installation materials and tools.

It also sells products through its Website, FloorandDecor.com. The company serves installers, commercial businesses, and other sectors. 

Shares have formed a bullish "cup and handle" following its earnings release. On May 4th, Floor & Decor Holdings reported 1st Quarter March 2023 earnings of $0.66 per share on revenue of $1.1 billion. The consensus earnings estimate was $0.67 per share on revenue of $1.1 billion. Revenue grew 9.1% on a year-over-year basis.

The company said it continues to expect 2023 earnings of $2.55 to $2.85 per share on revenue of $4.61 billion to $4.75 billion. The current consensus earnings estimate is $2.74 per share on revenue of $4.67 billion for the year ending December 28, 2023.

Entry Point: $96.25

Trading Range: $60.97 to $102.61

Trade Buy 1 July $95.00 Call at $5.00 Sell 1 July $105.00 Call at $1.25 For a net debit of $3.75 Profit/Loss Analysis Breakeven at $98.75 Maximum profit is $625.00 at strike of $105.00 Maximum loss is ($375.00) at strike of $95.00 Closing Summary Sold 1 July $95.00 Call at $15.00 Bought 1 July $105.00 Call at $5.15

Position closed on 7/11/2023 at price of $9.85 with a 162.67% gain in 21 days.

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