AT&T

Discussion in 'Options' started by oldnemesis, Nov 19, 2015.

  1. http://www.insidermonkey.com/blog/four-bullish-takes-from-billionaire-warren-buffett-384459/

    http://finance.yahoo.com/news/warren-report-5-stocks-buffett-234311047.html

    http://247wallst.com/investing/2015/11/18/6-big-dividend-hikes-expected-before-year-end/

    http://finance.yahoo.com/echarts?s=...":true,"range":"5y","allowChartStacking":true}

    Trade:
    with T at 33.54
    APR 29/24 bull put spread for a net credit of $25
    Yield = 25/475 = 5.26% in 148 days or 13% annualized
    Prob = 93%
    Expectation = .93(25) - .01(475) - .06(238) = 23.25 - 4.75 - 14.28 = 4

    Price................... Profit / Loss............. ROM %
    18.00...................... (475.00)................. -94.74%
    22.00...................... (475.00)................. -94.74%
    24.00...................... (475.00)................. -94.74%
    27.43...................... (132.50)................. -26.50%
    28.75........................... 0.00..................... 0.00%
    29.00......................... 25.00..................... 5.26%
    35.00......................... 25.00..................... 5.26%
    40.00......................... 25.00..................... 5.26%
    45.00......................... 25.00..................... 5.26%
     
  2. trilogic

    trilogic


    Thanks , you get filled at this level, how is liquidity during the day in these3 strikes