LH

Discussion in 'Options' started by oldnemesis, Apr 25, 2016.

  1. http://finance.yahoo.com/news/labcorp-lh-tops-q1-earnings-140202812.html

    http://www.msn.com/en-us/money/stockdetails/financials/fi-126.1.LH.NYS

    http://finance.yahoo.com/echarts?s=LH+Interactive#{"range":"2y","allowChartStacking":true}

    Trade:
    With LH at 123.80
    Nov 100/95 bull put spread for a net credit of $50
    Yield = 50/450 = 11.1% in 204 days or 19.9% annualized
    Prob = 88%
    Expectation = .88(50) - .07(450)- .05(225) = 44 - 31.5 - 11.2 = 1.3

    Price.............. Profit / Loss........ ROM %
    75.00................. (450.00)............. -88.89%
    85.00................. (450.00)............. -88.89%
    95.00................. (450.00)............. -88.89%
    99.50..................... 0.00.................. 0.00%
    100.00................. 50.00................ 11.11%
    105.00................. 50.00................ 11.11%
    120.00................. 50.00................ 11.11%
    130.00................. 50.00................ 11.11%
    140.00................. 50.00................ 11.11%

    filled AT $50 (10.00 AM)
     
    Last edited: Apr 26, 2016