Call Spread on AAXN on 1/4/2021

Axon Enterprise, Inc. (AAXN) develops, manufactures, and sells conducted energy weapons (CEWs) worldwide.

Double Bottom on $ AAXNThe company operates through two segments, TASER and Software and Sensors. It offers TASER X26P, TASER X2, TASER 7, and TASER Pulse and Bolt CEWs; and related cartridges.

The company also provides on-officer body cameras and Axon Fleet in-car video systems; and Axon Evidence connected software network; Axon Records cloud-based records management system; Axon Signal enabled devices; and computer-aided dispatch software, as well as Axon docks, cartridges, and batteries.

In addition, it offers Evidence.com, a cloud-based digital evidence management system; and provides hardware and cloud-based software solutions that enable law enforcement to capture, securely store, manage, share, and analyze video and other digital evidence.

Axon Enterprise, Inc. sells its products through its direct sales force, distribution partners, online store, and third-party resellers.

The company was formerly known as TASER International, Inc. and changed its name to Axon Enterprise, Inc. in April 2017.

Axon reported a 3rd Quarter September 2020 loss of $0.01 per share on revenue of $166.4 million. The consensus estimate was a loss of $0.13 per share on revenue of $150.3 million. Revenue grew 27.2% on a year-over-year basis.

The company said it expects fourth quarter revenue of $175.0 million to $185.0 million. The current consensus revenue estimate is $175.54 million for the quarter ending December 31, 2020.

This stock's year-to-date growth is 61.6% and this growth should continue in the coming weeks.

We will be trading a Call Spread on February 19th

Last Trade: $122.53

Trading Range: $50.05 - $134.73

 

Trade

  • Buy 1 February $120.00 Call at $9.38
  • Sell 1 February $135.00 Call at $3.46
  • For a net debit of $5.92

Profit/Loss Analysis

  • Breakeven at $125.92
  • Maximum profit is $908.00 at strike of $135.00
  • Maximum loss is ($592.00) at strike of $120.00

Closing Summary

  • Sold 1 February $120.00 Call at $50.00
  • Bought 1 February $135.00 Call at $32.50

Position closed on 1/22/2021 at price of $17.50 with a 195.61% gain in 18 days.

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