WKN: 747206 ISIN: DE0007472060 Symbol: WDI Typ: Stock
Recently, Wirecard (WDI) fell more than 30% from its highs and is hovering now just under the 200 DMA which is at 141 EUR. After touching 125 EUR on Nov 20th, the stock managed to establish support around the 130 EUR level.
Fundamentally, the CEO just reiterated strong guidance for 2019, raising operating EBITA profit between 740-800 million EUR with an annual growth forecast above 30%.
Price targets covered by several analysts range between 200-250 EUR per share.
Technically we just opened a bearish pattern which could lead us in another strong selling wave towards the 110 level.
Long-term investors should use this opportunity to set up a combo bull trade selling the 110 April put and buying the 150 April call at even.
This enables one to buy the stock at the 110 level if the bearish movement continues, a truly remarkable price entry, while leaving us a chance to rein in some profits above the 150 strike if the stock reverses its trend during the next half year. This combo bull set up is at no cost (commission of 2x2 EUR excluded) if your trade is filled at even.
Selling 110 APR PUT WDI
Buying 150 APR CALL WDI
Place order GTC at EVEN
This is a so-called win-win order hence one either step in at 110 EUR to get long WDI stock or participate above the 150 call strike in case WDI turns bullish again.
If none of the strikes are reached till April expiration no cash is lost.
Worst case scenario: One will be assigned to buy WDI at the put strike price of 110 EUR with 100 shares per option sold, meaning you buy 100 shares at 110 EUR/share for a total of 11.000 EUR.
For our beginners, you need a broker account at an online broker providing the possibility to trade exchange-traded options at EUREX (e.g. Captrader in Germany)
with at least 50% cash of assigned volume (100 shares per option x 110 EUR put strike level x 50% cash = 5.500 EUR margin + 4 EUR commission for both options)
In any case, a 6.000 EUR cash deposit will be sufficient.
To me, this entry price is a real bargain for a company with an outstanding growth potential in the coming decade, generating most of the cash transactions already in Asia.
Best case scenario: WDI manages to reverse the trend and breaks above the 190 EUR mark and probably sets new all-time highs beyond 200 EUR. The 150 strike call will be worth 5.000 EUR at price of 200 EUR/share and 10.000 EUR at 250 EUR/share at last trading day with the chance to sell your call any time before expiration on April 19th, 2019 during public trading hours.
I reckon, not too bad folks for a trade without any cash payment upfront.