Barron's cover is touting the recommendations of its Fixed Income Panel. http://www.barrons.com/articles/safe-yields-of-up-to-5-barrons-fixed-income-panel-1470459663 I always look at such lists to see if I can do better than buying the stock by using option spreads. VOD http://finance.yahoo.com/m/ade57df6-fb3a-3597-ba18-2fc125791fbe/ss_vodafone-gets-eu-nod-for.html http://finance.yahoo.com/m/1537fbed-17db-37b8-adc1-c2da77385ed4/ss_vodafone-group-plc-:vod-us:.html http://finance.yahoo.com/news/vodafone-says-germany-spain-italy-112531759.html https://www.thestreet.com/story/136...steady.html?puc=yahoo&cm_ven=YAHOO&yptr=yahoo http://finance.yahoo.com/quote/vod?ltr=1 http://stockcharts.com/h-sc/ui?s=vod Trade: With VOD at 31.12 Jan '17 25/20 bull put spread for a net credit of $20 Yield = 20/480 = 4.17% in 166 days or 9.0% annualized VOD yields 4.97% annualized (The table above list yield at 6.58% but I can't verify that) Prob = 94% Expectation = .94(20) - .03(480) - .03(240) = 18.8 - 14.4 - 7.2 = 0 Price......... Profit / Loss.......... ROM % 15.00............ (480.00)............. -95.83% 17.50............ (480.00)............. -95.83% 20.00............ (480.00)............. -95.83% 24.42............ (38.50)............... -7.70% 24.80............... 0.00.................. 0.00% 25.00.............. 20.00................. 4.17% 30.00.............. 20.00................. 4.17% 35.00.............. 20.00................. 4.17% 40.00.............. 20.00................. 4.17% Higher yield/lower risk trade than buying the stock
UL http://finance.yahoo.com/news/unilever-un-q2-revenue-grows-110611658.html http://finance.yahoo.com/m/1525ef9f-fb90-3303-9a32-c4e972077033/ss_unilever-profits-rise-2.html http://www.forbes.com/sites/danielf...otix&partner=yahootix&yptr=yahoo#a08c23d732f3 http://www.msn.com/en-us/money/stockdetails/financials/fi-126.1.UL.NYS http://finance.yahoo.com/chart/UL#eyJtdWx0aUNvbG9yTGluZSI6ZmFsc2UsImJvbGxpbmdlclVwcGVyQ29sb3IiOiIjZTIwMDgxIiwiYm9sbGluZ2VyTG93ZXJDb2xvciI6IiM5NTUyZmYiLCJtZmlMaW5lQ29sb3IiOiIjNDVlM2ZmIiwibWFjZERpdmVyZ2VuY2VDb2xvciI6IiNmZjdiMTIiLCJtYWNkTWFjZENvbG9yIjoiIzc4N2Q4MiIsIm1hY2RTaWduYWxDb2xvciI6IiMwMDAwMDAiLCJyc2lMaW5lQ29sb3IiOiIjZmZiNzAwIiwic3RvY2hLTGluZUNvbG9yIjoiI2ZmYjcwMCIsInN0b2NoRExpbmVDb2xvciI6IiM0NWUzZmYiLCJyYW5nZSI6IjJ5IiwiYWxsb3dDaGFydFN0YWNraW5nIjp0cnVlfQ== Trade: With UL at 46.17 Feb '17 40/37.5 bull put spread for a net credit of $25 Yield = 25/225 = 11.1% in 194 days or 20.9 annualized UL yields 3.06% annualized Prob = 86.8% Expectation = .86(25) - .05(225) -.09(113) = 21.5 - 11.3 - 10.2 = 0 Price.......... Profit / Loss.......... ROM % 28.00............. (225.00).............. -88.90% 33.00............. (225.00).............. -88.90% 37.50............. (225.00).............. -88.90% 39.75.................. 0.00.................. 0.00% 39.78.................. 3.10.................. 1.24% 40.00................. 25.00................ 11.10% 45.00................. 25.00................ 11.10% 50.00................. 25.00................ 11.10% 55.00................. 25.00................ 11.10%
Before I would actually do these trades I would test the corresponding call spreads and choose the best one.