http://finance.yahoo.com/news/why-barclays-reduced-ecolab-price-205351200.html http://www.streetedition.net/zacks-rating-on-ecolab/6249076/ http://finance.yahoo.com/news/ecolab-misses-street-4q-forecasts-134233834.html http://finance.yahoo.com/news/ecolab-ecl-misses-q4-earnings-200708660.html http://finance.yahoo.com/q/ks?s=ECL+Key+Statistics http://stockcharts.com/h-sc/ui?s=ecl Trade: With ECL at 105.25 Oct 120/125 bear call spread for a net credit of $84 Yield = 84/416 = 20.2% in 225 days or 32.8% annualized Prob = 76% Expectation = .76(84) - .18(416) - .06(208) = 63.8 - 74.9 - 12.5 = -23.6 Price................ Profit / Loss.......... ROM % 80.00...................... 84.00.............. 20.20% 90.00...................... 84.00.............. 20.20% 110.00.................... 84.00.............. 20.20% 120.00.................... 84.00.............. 20.20% 120.84...................... 0.00............... 0.00% 125.00................. (416.00)........... -79.80% 130.00................. (416.00)........... -79.80% 140.00................. (416.00)........... -79.80% 150.00................. (416.00)........... -79.80% filled at $84
oldnemesis ........I suggest you collaborate or get tutoring from botpro His Continous hedging as a rachet device to lock-in profits thread has some ground breaking ideas when it comes to option trades. You will benefit greatly with his advice.
Closed ECL at a loss of $163 per contract http://stockcharts.com/h-sc/ui?s=ecl Despite the fact that ECL is still rated as a sell by Zacks, it did exceed earnings estimates. I did not close out when it beat earnings : http://finance.yahoo.com/news/ecolab-ecl-beats-q1-earnings-141502615.html as I probably should have but now it is getting too close to my spread and I'd just as soon get rid of it as I no longer have the view I had when I made the original trade. BTW What ever happened to BOTPRO?? Wasn't he the guy who read about options but had no money to trade... and had never made an options trade in his life???? Maybe he started a newsletter.