http://www.bloomberg.com/news/artic...after-grocer-predicts-slower-growth-this-year http://www.bloomberg.com/gadfly/art...tock-selloff-is-overblown?cmpid=yhoo.headline http://finance.yahoo.com/news/why-krogers-kr-stock-plummeting-183206980.html http://stockcharts.com/h-sc/ui?s=kr http://finance.yahoo.com/q/ks?s=KR+Key+Statistics http://finance.yahoo.com/q/co?s=KR+Competitors Trade: With KR at 37.80 Jan '17 30/27.50 bull put spread for a net credit of $30 (bid/ask = 25/55) Yield = 30/220 = 13.6% in 323 days or 15.4% annualized Prob = 74% Expectation = .74(30) - .12(220) - .14(110) = 22.2 - 26.4 - 15.4 = -19.6 Price...... Profit / Loss..... ROM % 20.00.......... (220.00).......... -86.40% 25.00.......... (220.00).......... -86.40% 27.50.......... (220.00).......... -86.40% 29.70............... 0.00.............. 0.00% 30.00............. 30.00............. 13.60% 32.50............. 30.00............. 13.60% 35.00............. 30.00............. 13.60% 40.00............. 30.00............. 13.60% 45.00............. 30.00............. 13.60%