SJR

Discussion in 'Options' started by oldnemesis, Feb 8, 2016.

  1. http://finance.yahoo.com/news/why-dump-shaw-communications-sjr-222110017.html

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

    Trade:
    With SJR at 16.95
    Jul 17.5/20 bear call spread for a net credit of $45
    Yield = 45/205 = 22% in 158 days or 51% annualized
    Prob = 60%
    Expectation = .6(45) - .15(205) - .25(103) = 27 - 30.75 - 25.75 = -29.5

    Price...... Profit / Loss...... ROM %
    12.00............ 45.00.......... 22.00%
    15.07............ 45.00.......... 22.00%
    17.50............ 45.00.......... 22.00%
    17.55............ 39.70.......... 15.88%
    17.95.............. 0.00........... 0.00%
    20.00.......... (205.00)...... -78.00%
    20.04.......... (205.00)...... -78.00%
    22.52.......... (205.00)...... -78.00%
    25.00.......... (205.00)...... -78.00%