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Put Options on MAT on 7/18/2013

Broken Support on MATMattel (MAT) designs, manufactures, and markets various toy products.

The company operates in three segments: North America, International, and American Girl. Its products comprise fashion dolls and accessories, vehicles and play sets, and games and puzzles. The company also publishes advice and activity books, as well as magazines. It offers its products under the Mattel Girls and Boys brands, including Barbie, Polly Pocket, Little Mommy, Disney Classics, Monster High, Hot Wheels, Matchbox, Tyco R/C, CARS, Radica, Toy Story, Max Steel, WWE Wrestling, Batman, and Superman; Fisher-Price brands comprising Fisher-Price, Little People, BabyGear, Imaginext, Dora the Explorer, Go Diego Go!, Bubble Guppies, Thomas & Friends, Mike The Knight, Octonauts, Mickey Mouse Clubhouse, Disney’s Jake and the Never Land Pirates, See ‘N Say, and Power Wheels; and American Girl Brands, such as My American Girl, Bitty Baby, McKenna, and the newest Girl of the Year.

The company sells its American Girl products directly to consumers through catalog, Website, and proprietary retail stores in the United States and Canada. Mattel sells its other products directly to retailers, including discount and free-standing toy stores, chain stores, department stores, and other retail outlets; to wholesalers; and through agents and distributors worldwide.

Shares fell hard yesterday after the company reported earnings that were below market's expectation. Share prices are expected to continue to move lower!

52-Week Trading Range: $33.84 - $48.48

Last Trade:  $43.40

 

Here is the trade: 

Buy one August $43 Put option for $0.80

 

Here is the payoff table:

Trade

  • Buy 1 August $43.00 Put at $0.80
  • For a net debit of $0.80

Profit/Loss Analysis

  • Breakeven at $42.20
  • Maximum profit is unbounded
  • Maximum loss is ($80.00) at strike of $43.00

Closing Summary

  • Sold 1 August $43.00 Put at $1.00

Position closed on 8/16/2013 at price of $1.00 with a 25.00% gain in 28 days.

Updates

8/16/2013 9:40:00 AM

MAT put option closed at $1.00 ahead of expiration

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