Put Options on CTL on 8/22/2012

CenturyLink would like to be your communications hook-up for more than the next 100 years. Historically a regional wireline local and long-distance telephone provider, it's connecting with the times by transforming into a broadband and network services provider for residential, business, and government clients. The company is the third-largest US telecom company by total access lines, and is the incumbent local carrier in 37 states, though three-quarters of its lines are in just a dozen, mostly in the West and Midwest. Additionally, it provides wireless service through Verizon, and paid television service through its own Prism TV (in selected markets) with satellite provider DIRECTV.

Stockwinners is bearish on this name for the following reasons:

1. Heavily dependent on Verizon and Direct TV. Both businesses have slowed down and will push CenturyLink down.
2. Shares have formed a bearish channel up formation and going to break down from this formation

TRADE: Buy 1 SEPT $40 Put for less than $0.40

Breakeven & profit/loss Analysis

• Breakeven on $39.40 by SEPT expiration
• Profits below $39.40 , Max profit of $39.40 if stock reaches $0 by SEPT expiration
• Losses up to $.40 between 39.40 to $40, Max loss of $0.30 above $40 by SEPT expiration

The payoff table is presented below:

Trade Buy 1 September $40.00 Call at $0.40 For a net debit of $0.40 Profit/Loss Analysis Breakeven at $40.40 Maximum profit is unbounded Maximum loss is ($40.00) at strike of $40.00 Closing Summary Sold 1 September $40.00 Call at $0.00

Position closed on 9/22/2012 at price of $0.00 with a -100.00% loss in 31 days.

Updates

9/21/2012 8:00:00 PM

This position expired on Friday 21st of September 2012.

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