Call Spread on P on 10/3/2013

Pandora Media (P) provides Internet radio services in the United States.

The company allows listeners to create up to 100 personalized stations to access unlimited hours of free music and comedy, as well as offers Pandora One, a paid subscription service to listeners. It is also involved in the sale of displays, audio advertising, and video advertising products to advertisers for delivery on computer, mobile, and other connected device platforms.

As of January 31, 2013, the company had approximately 175 million registered users; and 65.6 million active users. 

Shares have formed a bullish "cup & handle" following two events. First, Pandora reported solid earnings. Second, Apple lanuched its long awaited Apple Radio. It is now apparent that Apple Radio has not affected Pandora's membership.

52-Week Trading Range: $7.08 to $27.93

Last Trade:  $26.91

Here is the trade: 

Trade Buy 1 November $26.00 Call at $2.70 Sell 1 November $29.00 Call at $1.45 For a net debit of $1.25 Profit/Loss Analysis Breakeven at $27.25 Maximum profit is $175.00 at strike of $29.00 Maximum loss is ($125.00) at strike of $26.00 Closing Summary Sold 1 November $26.00 Call at $3.05 Bought 1 November $29.00 Call at $1.40

Position closed on 10/18/2013 at price of $1.65 with a 32.00% gain in 14 days.

Updates

10/18/2013 9:56:35 AM

We are taking profits on Pandora (P) call spread.

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