http://finance.yahoo.com/news/add-pulte-phm-stock-portfolio-202008929.html http://www.msn.com/en-us/money/tops...arnings-and-sales-home-closings-up/ar-BBoPdhi http://finance.yahoo.com/q/is?s=PHM&annual http://finance.yahoo.com/q/is?s=PHM http://finance.yahoo.com/q/ks?s=PHM+Key+Statistics http://stockcharts.com/h-sc/ui?s=phm http://finance.yahoo.com/echarts?s=PHM+Interactive#{"range":"2y","allowChartStacking":true} Trade: With PHM at 16.53 Jul 14/10 bull put spread for a net credit of $40 Yield = 40/360 = 11.1% in 161 days or 25.2% annualized Prob = 70% Expectation = .7(40) - .03(360) - .27(180) = 28 - 10.8 - 48.6 = -59 Price............ Profit / Loss......... ROM % 7.50................ (360.00)............. -88.90% 9.00................ (360.00)............. -88.90% 10.00.............. (357.40)............. -88.95% 12.69................ (91.50)............ -22.88% 13.60................... 0.00................ 0.00% 14.00................. 40.00............... 11.10% 15.00................. 40.00............... 11.10% 18.00................. 40.00............... 11.10% 20.00................. 40.00............... 11.10%
u entering into a 6 month out Option?? Glad u have plenty of spare time on ur hands.. I kinda like trading on expiry day myself