http://finance.yahoo.com/news/pfizer-buy-medivation-14-bln-105439727.html http://www.wsj.com/articles/pfizer-pays-the-price-for-growth-1471884546 http://finance.yahoo.com/news/pfizer-buy-medivation-14b-boost-085008468.html http://stockcharts.com/h-sc/ui?s=mdvn http://www.fool.com/investing/2016/...utm_medium=feed&utm_source=yahoo-2&yptr=yahoo Close expected by 12/31/2016 Trade: Jan '18 80/75 bull put spread for a net credit of $20 Yield = 20/480 = 4.2% in 119 days or 12.8% annualized
Have you done this or just been contemplating? From my broker's website, there is no way to execute this order. The spread is so wide and the volume is near zero.
Long term uptrend is intact and has been for quite a few months. We're a bit overbought here, so from a trading perspective , it would be best to buy on a short term pullback in oversold condition. It would be difficult to trade from the short side with the gap, but could be done. The stop must be extremely close on short. Long is a better bet on pullback.--Izzy