BAX

Discussion in 'Options' started by oldnemesis, Oct 3, 2015.

  1. http://finance.yahoo.com/news/baxter-strong-buy-fda-approvals-172005209.html

    http://www.msn.com/en-us/money/stockdetails/fi-126.1.BAX.NYS?symbol=BAX&form=PRFIEQ

    http://finance.yahoo.com/echarts?s=BAX+Interactive#{"range":"2y","allowChartStacking":true}

    Trade:
    with BAX at 33.55
    Feb 30/25 bull put spread for a net credit of $60
    Yield = 60/440 = 13.6% in 139 days or 36% annualized
    Prob = 69%

    Price............ Profit / Loss.......... ROM %
    18.00................ (440.00)........... -88.00%
    20.00................ (440.00)........... -88.00%
    25.00................ (440.00)........... -88.00%
    27.88................ (151.60)........... -30.32%
    29.40..................... 0.00............... 0.00%
    30.00................... 60.00.............. 13.60%
    32.00................... 60.00.............. 13.60%
    35.00................... 60.00.............. 13.60%
    40.00................... 60.00.............. 13.60%