Conservative Options Trades

THOR: Update
http://www.zacks.com/commentary/24965/thoratec-corp

http://finance.yahoo.com/news/thora...-163902087.html

http://finance.yahoo.com/news/thora...-164904789.html

http://www.youtube.com/watch?v=-Q2wyRwqboY

http://www.youtube.com/watch?v=bhEpx1id-ec

http://finance.yahoo.com/q/bc?t=5y&...&c=&s=thor&ql=1

Trade:
With THOR at 37.58
Buy the July THOR 35 call and sell the July 40 call for a net debit of $305


Filled at 3.0 net debit with THOR at 37.94 (or there abouts)
NBBO: 210/310

Price...................P/L.........filled
30.....................(305).......(300)
35.....................(305).......(300)
38.05...................0..............0
40......................195.........200
45......................195.........200

Potential yield = 200/300 = 67% in 214 days or 114% annualized


Hypothesis of the trade: That Thor will be above 40 at July expiration.
:-)
 
Quote from oldnemesis:

THOR: Update
http://www.zacks.com/commentary/24965/thoratec-corp

http://finance.yahoo.com/news/thora...-163902087.html

http://finance.yahoo.com/news/thora...-164904789.html

http://www.youtube.com/watch?v=-Q2wyRwqboY

http://www.youtube.com/watch?v=bhEpx1id-ec

http://finance.yahoo.com/q/bc?t=5y&...&c=&s=thor&ql=1

Trade:
With THOR at 37.58
Buy the July THOR 35 call and sell the July 40 call for a net debit of $305


Filled at 3.0 net debit with THOR at 37.94 (or there abouts)

Price...................P/L.........filled
30.....................(305).......(300)
35.....................(305).......(300)
38.05...................0..............0
40......................195.........200
45......................195.........200

:-)
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Ummm no. It's a credit and it never traded there. It's currently 2.45 mid:

1g6o0i.png
 
Quote from atticus:

Ummm no. It's a credit and it never traded there. It's currently 2.45 mid:

1g6o0i.png
More...
I see the July one credit trade that took place at the time of 12:21
5.9 - 2.9 = $3
It's a call trade.
Not a put.
 
Quote from Put_Master:

I see the July one credit trade that took place at the time of 12:21
5.9 - 2.9 = $3
It's a call trade.
Not a put.
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Whoops thanks. My apologies, nemesis. Same risk, and don't understand the logic behind this trade knowing what he's done in the past.
 
9c962636-0cba-4188-b86c-20a7ee35f791.JPG


Thoratec Corporation engages in the development, manufacture, and marketing of proprietary medical devices used for circulatory support. The company’s primary product lines include ventricular assist devices, such as HeartMate II, an implantable left ventricular assist device consisting of a rotary blood pump to provide intermediate and long-term mechanical circulatory support (MCS); and HeartMate XVE, an implantable and pulsatile left ventricular assist device for intermediate and longer-term MCS. Its ventricular assist devices also comprise Paracorporeal Ventricular Assist Device, an external pulsatile ventricular assist device, which provides left, right, and biventricular MCS approved for bridge-to-transplantation (BTT), including home discharge, and post-cardiotomy myocardial recovery; and Implantable Ventricular Assist Device, an implantable and pulsatile ventricular assist device designed to provide left, right, and biventricular MCS approved for BTT comprising home discharge, and post-cardiotomy myocardial recovery. The company also provides CentriMag, an extracorporeal full-flow acute surgical support platform that offers support up to 30 days for cardiac and respiratory failure. In addition, it offers PediMag and PediVAS extracorporeal full-flow acute surgical support platforms designed to provide acute surgical support to pediatric patients. The company sells its products through direct sales force in the United States, as well as through a network of distributors internationally. Thoratec Corporation was founded in 1976 and is headquartered in Pleasanton, California.

I know Thoratec and companies like Thoratec well. The belief that it will be above $40 in July is a result of that familiarity and it's recent successes.

This is not like my other OTM put spreads simply because option pricing for Thoratec would not permit those types of positions.

Perhaps I should have labelled this as a 'different' type of trade.
 
Nothing wrong with it but no assist on distribution nor theta. It's a bit rich as the mid is 2.80 and the put-spread microstructure is better. Anyway, it's a pick-em.

Personally, I'd rather see people trading guts than going deep OTM.
 
 
Quote from oldnemesis:

BDX:

http://finance.yahoo.com/news/becton-remains-neutral-163912074.html

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

http://investing.money.msn.com/investments/financial-statements?symbol=bdx

http://finance.yahoo.com/q/co?s=BDX+Competitors

http://finance.yahoo.com/q/bc?t=5y&s=BDX&l=on&z=l&q=l&c=&ql=1&c=^GSPC

http://finance.yahoo.com/q/bc?s=BDX&t=5y&l=on&z=l&q=l&c=

Trade:
June 65/60 bull put spread for a net credit of $25
Yield = 25/475 = 5.3% in 185 days or 10.4% annualized
Prob = 96%
Expectation = .96(25) - .01(475) - .03(238) = 24 - 4.75 - 7.14 = 12.11
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Which is the leader?
 
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