SYY

Discussion in 'Options' started by oldnemesis, Mar 1, 2016.

  1. http://finance.yahoo.com/news/sysco-syy-improves-income-growth-211309358.html

    http://www.thestreet.com/story/1347...ome-growth-target.html?puc=yahoo&cm_ven=YAHOO

    http://www.msn.com/en-us/money/stockdetails/financials/fi-126.1.SYY.NYS

    http://finance.yahoo.com/echarts?s=SYY+Interactive#{"range":"2y","allowChartStacking":true}

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

    Trade:
    With SYY at 44.57
    Jan '17 35/30 bull put spread for a net credit of $40
    Yield = 40/460 = 8.7% in 325 days or 9.8% annualized
    Prob = 91%
    Expectation = .91(40) - .02(460) - .07(230) = 36.4 - 9.2 - 15.1 = 12.1

    Price.............. Profit / Loss.......... ROM %
    25.00................. (460.00)............. -91.300%
    27.50................. (460.00)............. -91.30%
    30.00................. (460.00)............. -91.30%
    34.60...................... 0.00................. 0.00%
    35.00.................... 40.00.................. 8.70%
    37.50.................... 40.00.................. 8.70%
    40.00.................... 40.00.................. 8.70%
    50.00.................... 40.00.................. 8.70%
    55.00.................... 40.00.................. 8.70%

    I believe I will get the $40 fill during tomorrow's open as I insure other people's longs in SYY.
     
    Last edited: Mar 1, 2016