http://finance.yahoo.com/news/emc-dell-merger-receives-advisory-222010659.html http://finance.yahoo.com/echarts?s=EMC+Interactive#{"range":"2y","allowChartStacking":true} http://stockcharts.com/h-sc/ui?s=EMC Trade: with EMC at 27.33 Jan 24/19 bull put spread for a net credit of $28 Yield = 28/472 = 5.9% in 193 days or 11.2% annualized Prob = 82.5% Price..........P/L...........% 16.00........(472)......94.4% 20.00........(368)......73.6% 23.72...........0...........0.0% 27.33..........28.00......5.9% 30.00..........28.00......5.9% 35.00..........28.00......5.9%
Just curious....why go out so far, with such a wide strike for so little credit if you think the deal will happen as currently structured which would be shortly ?