ADT

[oldnemesis]

http://finance.yahoo.com/news/apollo-global-buy-security-services-120702123.html

http://finance.yahoo.com/news/adt-being-purchased-apollo-global-124459956.html

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

Apollo is paying $42
Trade:
With ADT at 39.61
April 40/37 bull put spread for a net credit of $40
Yield = 40/260 = 15.4% in 58 days or 97% annualized

Probability and expectation irrelevant.

Price.............. Profit / Loss......... ROM %
27.75................... (260.00).......... -84.62%
32.02................... (260.00).......... -84.62%
36.52................... (260.00).......... -84.62%
37.00................... (260.00).......... -84.62%
39.60........................ 0.00.............. 0.00%
40.00....................... 40.00............ 15.38%
41.01....................... 40.00............ 15.38%
45.51....................... 40.00............ 15.38%
50.00....................... 40.00............ 15.38%

Filled in 2 minutes