AFFX

[oldnemesis]

http://finance.yahoo.com/news/thermo-fisher-adds-affymetrix-biotech-234450340.html

http://www.bloomberg.com/news/artic...-agrees-to-acquire-affymetrix-for-1-3-billion

http://finance.yahoo.com/news/thermo-fisher-life-technologies-synergy-184506413.html

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

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



Trade:
With AFFX at 14.09
(thermo fisher is paying $14 so there is no room to make money on the stock but you can make a return by insuring the transaction)
Aug 12.5/10 bull put spread for a net credit of $20
Yield = 20/230 = 8.7% in 180 days or 17.6% annualized
Prob and expectation irrelevant

Price........ Profit / Loss........ ROM %
7.50............ (230.00)............. -91.30%
9.50............ (230.00)............. -91.30%
10.00.......... (230.00)............. -91.30%
11.48.......... (81.60)............... -32.64%
12.30............. 0.00................... 0.00%
12.50........... 20.00................... 8.70%
13.50........... 20.00................... 8.70%
15.00........... 20.00................... 8.70%
17.50........... 20.00................... 8.70%