http://finance.yahoo.com/news/strong-sell-stocks-march-9th-143502936.html http://finance.yahoo.com/news/abbott-labs-buy-diagnostics-company-191313757.html http://stockcharts.com/h-sc/ui?s=abt http://www.msn.com/en-us/money/stockdetails/financials/fi-126.1.ABT.NYS http://finance.yahoo.com/q/ks?s=ABT+Key+Statistics http://finance.yahoo.com/news/abbott-laboratories-posts-weak-guidance-150658499.html Trade: With ABT at 39.29 Aug 35/30 bull put spread for a net credit of $62 Yield = 62/438 = 14.2% in 163 days or 32% annualized Prob = 79% Expectation = .79(62) - .03(438) - .12(219) = 49.0 - 13.1 - 26.3 = 9.6 Price............. Profit / Loss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