GE

Discussion in 'Options' started by oldnemesis, Oct 16, 2015.

  1. http://finance.yahoo.com/news/ge-beats-street-3q-forecasts-113405215.html

    http://www.forbes.com/sites/laureng...nings/?utm_campaign=yahootix&partner=yahootix

    http://247wallst.com/banking-financ...ancial-asset-sale-means-for-general-electric/

    http://stockcharts.com/h-sc/ui?s=ge

    Trade:
    with GE at 28.43
    March 24/20 bull put spread for a net credit of $30
    Yield = 30/370 = 8.1% in 154 days or 19.2% annualized
    Prob = 89%
    Expectation = .89(30) - .01(370) - .1(185) = 26.7 - 3.7 - 18.5 = 4.5

    Price............... Profit / Loss........... ROM %
    15.00.................. (370.00)............. -91.90%
    18.00.................. (370.00)............. -91.90%
    20.00.................. (370.00)............. -91.90%
    23.11.................... (59.00)............. -14.75%
    23.70....................... 0.00................. 0.00%
    24.00..................... 30.00................. 8.10%
    27.00..................... 30.00................. 8.10%
    30.00..................... 30.00................. 8.10%
    35.00..................... 30.00................. 8.10%

    Like WMT a blue chip in transition...but a lot more successfully than WMT
     
    Last edited: Oct 16, 2015