ZTS

Discussion in 'Options' started by oldnemesis, Feb 20, 2016.

  1. http://www.barrons.com/articles/todays-top-5-stock-picks-safety-in-a-tough-market-1455885671

    http://finance.yahoo.com/news/zoetis-beats-4q-profit-forecasts-120830828.html

    http://www.thestreet.com/story/1344...-at-credit-suisse.html?puc=yahoo&cm_ven=YAHOO

    http://finance.yahoo.com/q/ks?s=ZTS+Key+Statistics

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

    Trade:
    With ZTS at 41.83
    Jan '17 25/28 bull put spread for a net credit of $75
    Yield = 75/225 = 33.3% in 335 days or 36% annualized
    Prob = 92%
    Expectation = .92(75) - .04( 225) - .04(113) = 69 - 9 - 4.5 = 55.5

    Price.......... Profit / Loss........ ROM %
    18.75............. (225.00)........... -66.67%
    25.00............ (225.00)............ -66.67%
    25.19............ (206.40)............ -68.80%
    27.25................ 0.00................ 0.00%
    28.00.............. 75.00............... 33.33%
    31.96.............. 75.00............... 33.33%
    40.00.............. 75.00............... 33.33%
    45.00............. 75.00................ 33.33%
    50.00............. 75.00................ 33.33%

    ($75 is speculative)
     
    Last edited: Feb 20, 2016