http://finance.yahoo.com/news/exclusive-emc-shop-itself-deal-023220090.html http://stockcharts.com/h-sc/ui?s=emc Trade: Jan 17 25/20 bull put spread for a net credit of $85 Yield = 85/415 = 20.5% in 466 days or 16% annualized Price........... Profit / Loss......... ROM % 15.00............. (415.00)........... -79.50% 18.96............. (415.00)........... -79.50% 20.00............. (415.00)........... -79.50% 23.12............. (103.00)........... -79.50% 24.15.................. 0.00............... 0.00% 25.00................. 85.00............. 20.50% 27.28................. 85.00............. 20.50% 31.45................. 85.00............. 20.50% 35.61................. 85.00............. 20.50% I leave my logic of the choice of trade as an exercise for the reader. There are thousands of other trades that could be justified. I expect the deal to close before the 466 days I have allowed.