http://finance.yahoo.com/news/irobot-irbt-q1-earnings-top-153903072.html http://finance.yahoo.com/q/ks?s=IRBT+Key+Statistics http://www.msn.com/en-us/money/stockdetails/financials/fi-126.1.IRBT.NAS http://finance.yahoo.com/echarts?s=IRBT+Interactive#{"range":"2y","allowChartStacking":true} Trade: With IBT at 37.39 Jan '17 25/20 bull put spread for a net credit of $45 Yield = 45/455 = 9.9% in 268 days or 13.5% annualized Prob = 81% Expectation = .81(45) - .07(455) - .12(228) = 36.45 - 31.85 - 27.36 = -22.8 Price......... Profit / Loss....... ROM % 15.00............ (455.00)........... -90.10% 20.00............ (455.00)........... -90.10% 21.09............ (345.90)........... -69.18% 24.55................. 0.00............... 0.00% 25.00............... 45.00............... 9.90% 27.50............... 45.00............... 9.90% 30.00............... 45.00............... 9.90% 40.33............... 45.00............... 9.90% 46.74............... 45.00............... 9.90% Scares the crap out of my cat.
Ladies and Gentlemens, please tighten up the seats and safety belts, this thing is about to fly to the moon.
20% up... Disclaimer, it isn't options, but it was and still is, long position in stocks. Actual gain 7.3% per two weeks, since i had no funds to enter, at the right time.
Ok. Landing complete. It was my third real trade 13 months ago. And i was out once covi fall begun with 5% loss, since all of my saving was in it ( yeah, i know...). Just feels good to be right long term. Told myself at covi lows, that it was a great buy at $35~. Hmnn, anyway, lucky to have this experience/to witness it.