EMC

[oldnemesis]

http://finance.yahoo.com/news/emc-dell-merger-receives-advisory-222010659.html

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

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

Trade:
with EMC at 27.33
Jan 24/19 bull put spread for a net credit of $28
Yield = 28/472 = 5.9% in 193 days or 11.2% annualized
Prob = 82.5%

Price..........P/L...........%
16.00........(472)......94.4%
20.00........(368)......73.6%
23.72...........0...........0.0%
27.33..........28.00......5.9%
30.00..........28.00......5.9%
35.00..........28.00......5.9%

 

[sss12]

http://finance.yahoo.com/news/emc-dell-merger-receives-advisory-222010659.html

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

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

Trade:
with EMC at 27.33
Jan 24/19 bull put spread for a net credit of $28
Yield = 28/472 = 5.9% in 193 days or 11.2% annualized
Prob = 82.5%

Price..........P/L...........%
16.00........(472)......94.4%
20.00........(368)......73.6%
23.72...........0...........0.0%
27.33..........28.00......5.9%
30.00..........28.00......5.9%
35.00..........28.00......5.9%

Just curious....why go out so far, with such a wide strike for so little credit if you think the deal will happen as currently structured which would be shortly ?