Gilead

Discussion in 'Options' started by oldnemesis, Sep 30, 2015.

  1. http://www.fool.com/investing/gener...patitis-c-unstop.aspx?source=eogyholnk0000001

    http://www.msn.com/en-us/money/stockdetails/fi-126.1.GILD.NAS?symbol=GILD&form=PRFIEQ

    http://finance.yahoo.com/echarts?s=GILD+Interactive#{"allowChartStacking":true}

    http://finance.yahoo.com/q/ks?s=GILD+Key+Statistics

    Trade:
    with GILD at 98.19
    May 70/65 bull put spread for a net credit of $55
    Yield = 55/455 = 12.1% in 233 days or 18.9% annualized
    Prob = 77%

    Price............ Profit / Loss.......... ROM %
    45.00.............. (445.00)............ -88.00%
    60.00.............. (445.00)............ -88.00%
    65.00.............. (445.00)............ -88.00%
    69.45................... 0.00................ 0.00%
    70.00................. 55.00............... 12.00%
    80.00................. 55.00............... 12.00%
    90.00................. 55.00............... 12.00%
    100.00............... 55.00............... 12.00%
     
    Last edited: Sep 30, 2015
  2. 77% probability of a 12.1% payout...my math might be wrong, but sounds like the house wins.