GRMN: http://www.forbes.com/sites/ericsav...added-to-sp-500-stock-index/?partner=yahootix http://www.forbes.com/sites/ericsav...to-sell-target-price-now-34/?partner=yahootix http://finance.yahoo.com/news/piper-selects-garmin-g1000-integrated-120000716.html http://finance.yahoo.com/news/garmin-3q-net-income-falls-200457235.html http://finance.yahoo.com/q/bc?s=GRMN&t=2y&l=off&z=l&q=l&c= Trade: With GRMN at 41.83: Apr 33/30 bull put spread for $25 Yield = 25/275 = 9.1% in 134 days or 25% annualized Prob = 95% Expectation = .95(25) - .01(275) - .04(137) = 23.75 - 2.75 - 5.48 = 15.5
KSS: http://finance.yahoo.com/news/kohls-november-comps-decline-142905676.html http://beta.fool.com/titans8904/201...ust/18200/?ticker=KSS&source=eogyholnk0000001 http://finance.yahoo.com/q/ks?s=KSS+Key+Statistics http://finance.yahoo.com/q/is?s=KSS http://finance.yahoo.com/q/bc?s=KSS&t=2y&l=on&z=l&q=l&c= http://finance.yahoo.com/q/bc?s=KSS&t=5y&l=off&z=l&q=l&c= Trade: With KSS at 44.03 Jul 33/30 bull put spread for a net credit of $35 Yield = 35/265 = 13.2% in 225 days or 21% annualized Prob = 90% Expectation = .9(35) - .04(265) - .06(132) = 31.5 - 10.6 - 7.9 = 13
HON: http://www.reuters.com/article/2012/12/10/us-honeywell-outlook-idUSBRE8B90H520121210 http://finance.yahoo.com/news/honeywell-issues-weak-2013-outlook-145437901.html http://finance.yahoo.com/q/ks?s=HON+Key+Statistics http://investing.money.msn.com/investments/financial-statements?symbol=hon http://finance.yahoo.com/q/bc?s=HON+Basic+Chart&t=5y Trade: With HON at 61.76 Sell the Jun 70 call and buy the Jun 72.50 call for a net credit of $32 Yield = 32/218 = 14.7% in 193 days or 28% annualized. Prob = 83% Expectation = .83(32) - .12(218) - .05(109) = 26.6 - 26.3 - 5.45 = -5 update: filled at 35
CLNE: http://www.forbes.com/sites/kensilv...-gas-fueled-cars-and-trucks/?partner=yahootix http://finance.yahoo.com/q/pr?s=CLNE+Profile http://www.fool.com/investing/general/2012/12/03/3-reasons-to-buy-clean-energy-fuels.aspx http://www.fool.com/investing/general/2012/12/06/3-reasons-to-sell-clean-energy-fuels.aspx http://finance.yahoo.com/q/ks?s=CLNE+Key+Statistics http://investing.money.msn.com/investments/financial-statements?symbol=clne http://finance.yahoo.com/q/bc?s=CLNE+Basic+Chart&t=5y Trade1: Sell the June $8 put for $35 credit Capital Required: $765 Yield = 35/765 = 4.6% in 188 days or 8.9% annualized. Prob = 89% Expectation = .89(35) - .01(765) - .10(382) = 31.2 - 7.65 - 38.2 = -15 Trade2: June 8/3 bull put spread for $30 credit Capital Required: $470 Yield = 30/470 = 6.4% in 188 days or 12.4% annualized. Prob = 89% Expectation = .89(30) - .01(470) - .1(235) = 26.7 - 4.7 - 23.5 = -1.5 Trade3 June 8/13 bull call spread for $365 debit Capital Required: $365 Yield = 135/365 = 37% in 188 days or 72% annualized Prob = 41% Expectation = .41(135) - .13(365) - .46(182)= 55.4 - 47.4 - 83.7 = -76 .............Trade1.........................Trade2.....................Trade 3 Price.....P/L..........%..............P/L............%.............P/L............% 1.........(665)......(87%).........(470)......(100%)........(365)..........(100%) 2.........(565)......(74%).........(470)......(100%)........(365)..........(100%) 3.........(465)......(61%).........(470)......(100%)........(365)..........(100%) 4.........(365)......(48%).........(367).......(78%).........(365)..........(100%) 5.........(265).......(35%)........(271).......(58%).........(365)..........(100%) 6.........(165)......(22%).........(161).......(34%).........(365)..........(100%) 7..........(65)........(8%)..........(65)........(14%).........(365)..........(100%) 8...........35..........4.6%..........30...........6.4%.........(365)..........(100%) 9...........35..........4.6%..........30...........6.4%.........(264)..........(72%) 10.........35..........4.6%..........30...........6.4%.........(161)...........(44%) 11........35...........4.6%..........30...........6.4%..........(58)............(16%) 12.........35..........4.6%..........30...........6.4%..........35................9.5% 13.........35..........4.6%..........30...........6.4%..........135..............37%
CLNE: http://www.forbes.com/sites/kensilv...-gas-fueled-cars-and-trucks/?partner=yahootix http://finance.yahoo.com/q/pr?s=CLNE+Profile http://www.fool.com/investing/general/2012/12/03/3-reasons-to-buy-clean-energy-fuels.aspx http://www.fool.com/investing/general/2012/12/06/3-reasons-to-sell-clean-energy-fuels.aspx http://finance.yahoo.com/q/ks?s=CLNE+Key+Statistics http://investing.money.msn.com/investments/financial-statements?symbol=clne http://finance.yahoo.com/q/bc?s=CLNE+Basic+Chart&t=5y Trade1: Sell the June $8 put for $35 credit Capital Required: $765 Yield = 35/765 = 4.6% in 188 days or 8.9% annualized. Prob = 89% Expectation = .89(35) - .01(765) - .10(382) = 31.2 - 7.65 - 38.2 = -15 Trade2: June 8/3 bull put spread for $30 credit Capital Required: $470 Yield = 30/470 = 6.4% in 188 days or 12.4% annualized. Prob = 89% Expectation = .89(30) - .01(470) - .1(235) = 26.7 - 4.7 - 23.5 = -1.5 Trade3 June 8/13 bull call spread for $365 debit Capital Required: $365 Yield = 135/365 = 37% in 188 days or 72% annualized Prob = 41% Expectation = .41(135) - .13(365) - .46(182)= 55.4 - 47.4 - 83.7 = -76 .............Trade1.........................Trade2.....................Trade 3 Price.....P/L..........%..............P/L............%..............P/L...............% 1.........(665)......(87%).........(470)......(100%)........(365)..........(100%) 2.........(565)......(74%).........(470)......(100%)........(365)..........(100%) 3.........(465)......(61%).........(470)......(100%)........(365)..........(100%) 4.........(365)......(48%).........(367).......(78%).........(365)..........(100%) 5.........(265).......(35%)........(271).......(58%).........(365)..........(100%) 6.........(165)......(22%).........(161).......(34%).........(365)..........(100%) 7..........(65)........(8%)..........(65)........(14%)..........(365)..........(100%) 8...........35..........4.6%..........30...........6.4%..........(365)..........(100%) 9...........35..........4.6%..........30...........6.4%..........(264)..........(72%) 10.........35..........4.6%..........30...........6.4%..........(161)...........(44%) 11.........35..........4.6%..........30...........6.4%...........(58)............(16%) 12.........35..........4.6%..........30...........6.4%...........35................9.5% 13.........35..........4.6%..........30...........6.4%...........135..............37% 14.........35..........4.6%..........30...........6.4%...........135..............37%
CSC: http://finance.yahoo.com/news/csc-sell-credit-business-222404176.html http://finance.yahoo.com/news/csc-offloads-staffing-unit-142901709.html http://finance.yahoo.com/q/ks?s=CSC+Key+Statistics http://finance.yahoo.com/q/bc?t=5y&s=CSC&l=on&z=l&q=l&c=&ql=1&c=^GSPC http://finance.yahoo.com/q/bc?t=5y&s=CSC&l=on&z=l&q=l&c=&ql=1 Trade: June 30/25 bull put spread for $40 credit Yield = 40/460 = 8.7% in 187 days or 17.6% annualized Prob = 91% Expectation = .91(40) - .01(460) - .08(230) = 36.4 - 4.6 - 18.4 = 13.4
In one of my many recurrent nightmares I am back in the ICU unit at Lankenau hospital where I used to work and Miss Krieger, the head nurse , is yelling at me about a patient who is literally dying in our hands... and i am at a loss as to what I can do. In those days a Left Ventricular Assist Device (LVAD) was about the size of a large refrigerator and the chances of getting off one alive was practically zero. I am glad to know that this is no longer the case: THOR: http://www.zacks.com/commentary/24965/thoratec-corp http://finance.yahoo.com/news/thoratec-wins-approval-japan-163902087.html http://finance.yahoo.com/news/thoratec-retained-outperform-164904789.html http://www.youtube.com/watch?v=-Q2wyRwqboY http://www.youtube.com/watch?v=bhEpx1id-ec http://finance.yahoo.com/q/bc?t=5y&l=off&z=l&q=l&p=&a=&c=&s=thor&ql=1 Trade: With THOR at 37.58 Buy the July THOR 35 call and sell the July 40 call for a net debit of $305 Price...................P/L 30.....................(305) 35.....................(305) 38.05...................0 40......................195 45......................195