DG

[oldnemesis]

http://247wallst.com/retail/2016/03/13/why-analysts-became-much-more-bullish-on-dollar-general/

http://www.thestreet.com/story/1349...pped-at-jefferies.html?puc=yahoo&cm_ven=YAHOO

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

http://finance.yahoo.com/q/is?s=DG+Income+Statement&annual

http://finance.yahoo.com/echarts?s=DG+Interactive#{"range":"2y","allowChartStacking":true}

Trade:
With DG at 85.01
Jan '17 55/50 bull put spread for a net credit of $30
Yield = 30/470 = 6.38% in 313 days or 7.4% annualized
Prob = 98%
Expectation = .98(30) - .01(470) - .01(235) = 29.4 - 4.7 - 2.4 = 22.3

Price........... Profit / Loss......... ROM %
37.50............... (470.00)........... -93.60%
50.00............... (470.00)........... -93.60%
50.70............... (400.30)........... -80.06%
54.70.................... 0.00.............. 0.00%
55.00.................. 30.00.............. 6.38%
65.00.................. 30.00.............. 6.38%
75.00.................. 30.00.............. 6.38%
85.00.................. 30.00.............. 6.38%
95.00.................. 30.00.............. 6.38%

With March expiration creating idle money this is an alternative to the long term treasury rate.

https://ycharts.com/indicators/30_year_treasury_rate