Shares of Etsy (ETSY) have traded to a low of $15.70 this morning following a nasty earnings report. The company reported a loss of 89 cents per share on sales of $58.5 million. Analysts were looking for a penny loss on revenue of $40.5 million.
The ETSY June 20 puts (ETSY150619P00020000) are currently trading at $4.00, up $2.65, after closing Tuesday's session at $1.35. This represents nearly a 200% return.
One Wall Street firm defended the shares and maintained a $23 Price Target. We doubt this will be achievable anytime soon and would wait a couple of quarters to see if the company's business model is sustainable.