VIAB

Discussion in 'Options' started by oldnemesis, Mar 15, 2016.

  1. http://finance.yahoo.com/news/bear-day-viacom-viab-130101795.html

    http://www.thestreet.com/story/1348...-at-credit-suisse.html?puc=yahoo&cm_ven=YAHOO

    http://www.msn.com/en-us/money/stockdetails/financials/fi-126.1.VIAB.NAS

    http://finance.yahoo.com/echarts?s=VIAB+Interactive#{"allowChartStacking":true}

    TRADE:
    With VIAB at 38.48
    Sept 50/55 bear call spread for a net credit of $35
    Yield = 35/465 = 7.5% in 185 days or 14.8% annualized
    Prob = 86%
    Expectation = .86(35) - .08(465) - .06(233) = 30.1 - 37.2 - 14 = -21.1

    Price.......... Profit / Loss.......... ROM %
    30.00................ 35.00................ 7.50%
    35.00................ 35.00................ 7.50%
    45.00................ 35.00................ 7.50%
    50.00................ 35.00................ 7.50%
    50.35.................. 0.00................ 0.00%
    52.63.............. (227.70)........... -45.54%
    55.00.............. (465.00)........... -92.50%
    60.00.............. (465.00)........... -92.50%
    65.00.............. (465.00)........... -92.50%