ECL

O

oldnemesis

http://finance.yahoo.com/news/why-barclays-reduced-ecolab-price-205351200.html

http://www.streetedition.net/zacks-rating-on-ecolab/6249076/

http://finance.yahoo.com/news/ecolab-misses-street-4q-forecasts-134233834.html

http://finance.yahoo.com/news/ecolab-ecl-misses-q4-earnings-200708660.html

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

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

Trade:
With ECL at 105.25
Oct 120/125 bear call spread for a net credit of $84
Yield = 84/416 = 20.2% in 225 days or 32.8% annualized
Prob = 76%
Expectation = .76(84) - .18(416) - .06(208) = 63.8 - 74.9 - 12.5 = -23.6

Price................ Profit / Loss.......... ROM %
80.00...................... 84.00.............. 20.20%
90.00...................... 84.00.............. 20.20%
110.00.................... 84.00.............. 20.20%
120.00.................... 84.00.............. 20.20%
120.84...................... 0.00............... 0.00%
125.00................. (416.00)........... -79.80%
130.00................. (416.00)........... -79.80%
140.00................. (416.00)........... -79.80%
150.00................. (416.00)........... -79.80%

filled at $84
 
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Closed ECL at a loss of $163 per contract

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

Despite the fact that ECL is still rated as a sell by Zacks, it did exceed earnings estimates. I did not close out when it beat earnings :

http://finance.yahoo.com/news/ecolab-ecl-beats-q1-earnings-141502615.html

as I probably should have but now it is getting too close to my spread and I'd just as soon get rid of it as I no longer have the view I had when I made the original trade.

BTW What ever happened to BOTPRO??

Wasn't he the guy who read about options but had no money to trade... and had never made an options trade in his life????

Maybe he started a newsletter.

:)
 
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