http://finance.yahoo.com/news/patterson-companies-beats-q3-earnings-161804789.html http://www.investors.com/research/i...ves-growth/?ven=YahooCP&src=AURLLED&ven=yahoo http://finance.yahoo.com/q/ks?s=PDCO+Key+Statistics http://finance.yahoo.com/q/is?s=PDCO+Income+Statement&annual http://finance.yahoo.com/echarts?s=PDCO+Interactive#{"range":"2y","allowChartStacking":true} Trade: With PDCO at 44.34 Jul 38/33 bull put spread for a net credit of $25 Yield = 25/475 = 5.3% in 125 days or 15.4% annualized Prob = 88.6% Expectation = .886(25) - .01(475) - .10(238) = 22.15 - 4.75 - 23.8 = -6.4 Price............... Profit / Loss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
Usually I do not show stocks like PDCO as income generators because such stocks typically have too much volatility to be used for that purpose. PDCO however actually is not that volatile having a beta of just .93...actually lower than the DOW index. Besides I am using a very short (for me) trade which I may renew if things stay stable for PDCO. Maybe it's stability is from it's diversification into dental and pets. That's pretty diverse to me.