PEP: http://finance.yahoo.com/news/pepsico-profit-hit-turnaround-efforts-214144070.html http://www.bloomberg.com/news/2012-...ts-estimates-on-higher-prices.html?cmpid=yhoo http://blogs.barrons.com/stockstowa...d-q2-spending-on-top-brands/?mod=yahoobarrons http://finance.yahoo.com/q/ks?s=PEP+Key+Statistics http://investing.money.msn.com/investments/financial-statements?symbol=PEP http://finance.yahoo.com/q/bc?t=5y&s=PEP&l=on&z=l&q=l&c=&ql=1&c=^GSPC http://finance.yahoo.com/q/bc?s=PEP&t=2y&l=on&z=l&q=l&c= Trade: With PEP at 72.26 Jan 62.50/60 Bull Put Spread for a net credit of $18 Yield = 18/232 = 7.8% in 174 days or 16.3% annualized Prob = 94.8% Expectation = .948(18) - .02(232) - .032(116) = 17 - 4.64 - 3.7 = 8.7
MCK: http://finance.yahoo.com/news/mckesson-pay-151m-settle-drug-182525476.html http://finance.yahoo.com/news/earnings-beat-mckesson-124442832.html http://finance.yahoo.com/q/ks?s=MCK+Key+Statistics http://investing.money.msn.com/investments/financial-statements?symbol=MCK http://finance.yahoo.com/q/bc?s=MCK&t=5y&l=on&z=l&q=l&c=^GSPC http://finance.yahoo.com/q/bc?s=MCK+Basic+Chart Trade: With MCK at 91.74 Jan 70/65 bull put spread for $20 Yield = 20/480 = 4.2 % in 174 days or 8.7% annualized Prob = 96% Expectation = .96(20) - .01(480) - .03(240) = 19.2 - 4.8 - 7.2 = 7.2
UTX: http://finance.yahoo.com/news/p-raises-outlook-united-technologies-222004906.html http://www.reuters.com/article/2012...6?feedType=RSS&feedName=innovationNews&rpc=43 http://finance.yahoo.com/news/modest-2q-united-technologies-161445912.html http://finance.yahoo.com/q/ks?s=UTX+Key+Statistics http://investing.money.msn.com/investments/financial-statements?symbol=UTX http://finance.yahoo.com/q/bc?t=5y&s=UTX&l=on&z=l&q=l&c=&ql=1&c=^GSPC http://finance.yahoo.com/q/bc?s=UTX&t=5y&l=on&z=l&q=l&c= Trade: Feb 55/50 bull put spread for a net credit of $32 Yield = 32/468 = 6.8% in 201 days or 12.4% annualized Prob = 97% Expectation = .97(32) - .01(468) - .02(234) = 31.04 - 9.36 - 4.68 = 17 this is a roll-over for me
HUM: http://www.bloomberg.com/news/2012-...st-as-medicare-costs-increase.html?cmpid=yhoo http://finance.yahoo.com/news/humana-cuts-outlook-following-weak-224859543.html http://news.investors.com/article/6...tate-earnings-this-week.htm?ven=yahoocp,yahoo http://finance.yahoo.com/q/ks?s=HUM+Key+Statistics http://investing.money.msn.com/investments/financial-statements?symbol=hum http://finance.yahoo.com/q/bc?s=HUM&t=2y&l=on&z=l&q=l&c= Bearish Trade: Jan 85/87.5 bear call spread for $37 Yield = 37/213= 17.4% in 171 days or 37.1% annualized Prob = 82% Expectation = .82(37) - .15(213) - .03(106) = 30.3 - 31.9 - 3.2 = -4.8 Bullish Trade: Jan 55/50 bull put spread for $55 Yield = 55/445 = 12.4% in 171 days or 26% annualized Prob = 83% Expectation = .83(55) - .08(445) - .09(222) = 45.6 - 35.6 - 20 = -10 Both at once?? http://en.wikipedia.org/wiki/Humana
CWT: http://www.fool.com/investing/etf/2012/06/15/make-money-in-promising-water-stocks.aspx http://finance.yahoo.com/news/california-water-group-announces-second-204100557.html http://www.fool.com/investing/gener...a-water-service-group-increases-sales-bu.aspx http://finance.yahoo.com/q/pr?s=CWT+Profile http://finance.yahoo.com/q/ks?s=CWT+Key+Statistics http://investing.money.msn.com/investments/financial-statements?symbol=CWT http://finance.yahoo.com/q/bc?t=5y&s=CWT&l=on&z=l&q=l&c=&ql=1&c=^GSPC http://finance.yahoo.com/q/bc?s=CWT&t=5y&l=on&z=l&q=l&c= CWT pays a 3.4% dividend. Trade: Sell the Dec 17.50 put for .60... actually I sold it yesterday before it bounced. (EEEKKS I just sold a naked put) Yield = 60/1690 = 3.55% in 140 days or 9.26% annualized My intent with this naked short put is to be put at 17.50. This will allow me to make the 3.4% dividend and sell calls for another 6% at least for a continued net ann yield in the area of 9.4%. BTW I have tried repeatedly in the past to be put with CWT but it just doesn't happen. It's OK because the yield on the naked put is about equal to the dividend + CC. We'll see if this time is the charm. (Sorry but I don't have a headquarters picture for CWT)
Looks like danshirley has been chased back to his comfort zone in his private thread. It's too hot in the other option forums for him so he seeks safety in this one.
KFT: http://www.forbes.com/sites/abrambr...-an-investors-shopping-list/?partner=yahootix http://finance.yahoo.com/news/kraft-shares-2nd-qtr-results-163008802.html http://finance.yahoo.com/news/kraft-foods-profit-2q-stands-205129150.html http://www.thestreet.com/story/1165...-52-week-high-kft.html?puc=yahoo&cm_ven=YAHOO http://finance.yahoo.com/q/ks?s=KFT+Key+Statistics http://investing.money.msn.com/investments/financial-statements?symbol=kft http://finance.yahoo.com/q/bc?t=5y&s=KFT&l=on&z=l&q=l&c=&ql=1&c=^GSPC http://finance.yahoo.com/q/bc?s=KFT&t=1y&l=on&z=l&q=l&c= Trade: With KFT at 40.51 Dec 35/30 bull put spread for $25 Yield = 25/475 = 5.26% in 139 days or 13.8% annualized Prob = 95% Expectation = .95(25) - .01(475) - .04(237) = 23.75 - 4.75 - 9.48 = 9.52