http://www.insidermonkey.com/blog/c...rement-income-with-a-4-dividend-yield-405356/ http://ewweb.com/videos/inside-coned-jim-cramers-mad-money-qa-coned-ceo-jon-mcavoy http://finance.yahoo.com/echarts?s=ED+Interactive#{"range":"5y","allowChartStacking":true} Trade: With ED at 65.49 Jan '17 52.5/50 bull put spread for a net credit of $25 Yield = 25/225 = 11.1% in 387 days or 10.5% annualized Prob = 89% Expectation = .89(25) - .07(225) - .04(112) = 22.25 - 15.75 - 4.48 = 2.27 Price ...........Profit / Loss.......... ROM % 37.50............. (225.00)............. -88.90% 46.00............. (225.00)............. -88.90% 50.00............. (225.00)............. -88.90% 52.25................. 0.00.................. 0.00% 52.50............... 25.00................. 11.00% 54.94............... 25.00................. 11.10% 63.89............... 25.00................. 11.10% 72.83............... 25.00................. 11.10% 81.78............... 25.00................. 11.10% filled at 30... considerably better than 4%, and the worst that could happen is you would buy ED at 52.5
Reminds me of sitting in a little restaurant on 42nd street eating breakfast and reading the New York Times....and The Daily News.
Update: http://finance.yahoo.com/news/con-ed-beats-4q-profit-224342435.html http://stockcharts.com/h-sc/ui?s=ed ED is 71 and change after the close.