Put Options on DAR on 10/9/2023

Darling Ingredients Inc. (DAR) develops, produces, and sells natural ingredients from edible and inedible bio-nutrients in North America, Europe, China, South America, and internationally. 

The company operates through three segments: Feed Ingredients, Food Ingredients, and Fuel Ingredients.

It offers ingredients and customized specialty solutions for customers in the pharmaceutical, food, pet food, feed, industrial, fuel, bioenergy, and fertilizer industries.

The company also collects and transforms various animal by-product streams into useable and specialty ingredients, such as collagen, edible fats, feed-grade fats, animal proteins and meals, plasma, pet food ingredients, organic fertilizers, yellow grease, fuel feedstock, green energy, natural casings, and hides.

In addition, it recovers and converts used cooking oil and animal fats, and residual bakery products into valuable feed and fuel ingredients. Shares are headling lower along a downward trendline. Note that shares have fallen below all support levels and lower prices are expected.

On August 8th, DAR reported earnings of $1.55 per share on revenue of $1.76 billion for the second quarter ended June 2023. The consensus earnings estimate was $1.57 per share on revenue of $1.83 billion. 

We will be trading November 17th Put Options

Last Trade: $46.88

Trading Range: $45.87 to $82.69

Trade Buy 1 November $50.00 Put at $4.50 For a net debit of $4.50 Profit/Loss Analysis Breakeven at $45.50 Maximum profit is unbounded Maximum loss is ($450.00) at strike of $50.00 Closing Summary Sold 1 November $50.00 Put at $8.65

Position closed on 11/6/2023 at price of $8.65 with a 92.22% gain in 27 days.

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