bax

Discussion in 'Options' started by oldnemesis, Mar 11, 2016.

  1. http://finance.yahoo.com/news/baxter-bax-now-strong-buy-200008177.html

    http://www.fool.com/investing/gener...ce=yahoo&utm_medium=feed&utm_campaign=article

    http://www.encyclopedia.chicagohistory.org/pages/2564.html

    http://www.msn.com/en-us/money/stockdetails/financials/fi-126.1.BAX.NYS

    http://finance.yahoo.com/q/ks?s=BAX+Key+Statistics

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

    http://stockcharts.com/h-sc/ui?s=bax

    Trade:
    With BAX at 39.80
    Aug 32.5/37.5 bull put spread for a net credit of $35
    Yield = 35/465 = 7.5% in 162 days or 17% annualized
    prob = 91%
    Expectation = .91(35) - .01(465) - .08(233) = 31.8 - 4.6 - 18.6 = 8.6

    Price........... Profit / Loss........... ROM %
    20.00.............. (465.00)............. -92.50%
    25.00.............. (465.00)............. -92.50%
    27.50.............. (465.00)............. -92.50%
    32.10.............. (5.20).................. -1.04%
    32.15............... 0.00..................... 0.00%
    32.50............. 35.00..................... 7.50%
    35.00............. 35.00..................... 7.50%
    40.00............. 35.00..................... 7.50%
    45.00............. 35.00..................... 7.50%
     
    Last edited: Mar 11, 2016