http://finance.yahoo.com/news/johnson-johnson-cut-3-000-145718640.html http://www.fool.com/investing/gener...ce=yahoo&utm_medium=feed&utm_campaign=article http://finance.yahoo.com/q/ks?s=JNJ+Key+Statistics http://finance.yahoo.com/echarts?s=JNJ+Interactive#{"range":"2y","allowChartStacking":true} Trade: With JNJ at 97.75 Jul 80/75 bull put spread for a net credit of $35 Yield = 35/465 = 7.5% in 178 days or 15.4% annualized Prob = 89% Expectation = .89(35) - .05(465) - .06(232) = 31.2 - 23.3 - 13.9 = -6 Price........... Profit / Loss........... ROM % 50.00.............. (465.00)............. -92.50% 70.00.............. (465.00)............. -92.50% 75.00.............. (465.00)............. -92.50% 79.65................... 0.00.................. 0.00% 80.00................. 35.00.................. 7.50% 85.00................. 35.00.................. 7.50% 95.00................. 35.00.................. 7.50% 105.00............... 35.00.................. 7.50% 115.00............... 35.00.................. 7.50%