MaccabiCapital

Vsat, Going DOWN?

Giá xuống
MaccabiCapital Cập nhật   
NASDAQ:VSAT   ViaSat, Inc.
What do you call a company, which has to invest lots of money ( which it does by selling more stock) to just keep up with the current market? VSAT
They are in the satellite internet business, focusing on rural areas, which of course is getting mroe compettion as the regular telcos are expanding their 4G internet footprint.. Oh yeah there is also directTV...
Right now they are able to package VOIP home phone but since when is home phone a growth area.... This is AT&T without the Dividends...

I am using a diagonal bull spread on this baby... Buy the 65 October, sell the 60 Sept... Cost me 3.57

Sell 1 contract of VSAT 2017 15-SEP 60.00 PUT @ $0.73 ($73.00)
Buy 1 contract of VSAT 2017 20-OCT 65.00 PUT @ $4.40 $440.00
Current Stock Price : $61.49
Break Even : $62.04
Total Cost: $367.00
Total Requirement: $367.00

Max Risk: $367.00
% Max Risk: 100.0%
Max Profit: $161.00
% Return: 43.9%

Ill be looking to get a 25% gain on this, or 40 cents... If not, Ill roll over the short into October..



Giao dịch đang hoạt động:
Octobers long put is now worth 3.10, which is a loss of $120, while I took in a credit of 73 dollars from option that matured Sept 15th ...
so net loss so far is $47

We are selling the 60 put October for a credit of 68 dollars...
making my BE on this trade be $62

so at this point I am risking $3 to make a maximum of $2

This is not the typical Risk to Reward I was hoping for, and partly is my fault for forgetting about this trade a few weeks ago when it sunk...
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