MDT

Discussion in 'Options' started by oldnemesis, Dec 9, 2015.

  1. MDT:
    http://finance.yahoo.com/news/medtronic-balanced-q2-growth-covidien-213009491.html

    http://www.tickerreport.com/banking...signs-a-credit-rating-to-medtronic-plc-mdt-2/

    http://www.thestreet.com/story/1338...-on-earnings-beat.html?puc=yahoo&cm_ven=YAHOO

    http://www.thestreet.com/story/1302...dling-shareholders-with-a-hefty-tax-bill.html

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

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

    Trade:
    with MDT at 78.08
    May 65/60 bull put spread for a net credit of $32
    Yield = 32/468 = 6.8% in 163 days or 15.3% annualized
    Prob = 94%
    Expectation = .94(32) - .02(468) - .04(234) = 30.1 - 9.4 - 9.4 = 11.3

    Price.............. Profit / Loss......... ROM %
    45.00................. (468.00)............ -93.20%
    55.00................. (468.00)............ -93.20%
    60.00................. (468.00)............ -93.20%
    64.68...................... 0.00................ 0.00%
    65.00.................... 32.00................ 6.80%
    70.00.................... 32.00................ 6.80%
    75.00.................... 32.00................ 6.80%
    80.00.................... 32.00................ 6.80%
    90.00.................... 32.00................ 6.80%
     
    Last edited: Dec 9, 2015