Gilead

[oldnemesis]

http://www.fool.com/investing/gener...patitis-c-unstop.aspx?source=eogyholnk0000001

http://www.msn.com/en-us/money/stockdetails/fi-126.1.GILD.NAS?symbol=GILD&form=PRFIEQ

http://finance.yahoo.com/echarts?s=GILD+Interactive#{"allowChartStacking":true}

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

Trade:
with GILD at 98.19
May 70/65 bull put spread for a net credit of $55
Yield = 55/455 = 12.1% in 233 days or 18.9% annualized
Prob = 77%

Price............ Profit / Loss.......... ROM %
45.00.............. (445.00)............ -88.00%
60.00.............. (445.00)............ -88.00%
65.00.............. (445.00)............ -88.00%
69.45................... 0.00................ 0.00%
70.00................. 55.00............... 12.00%
80.00................. 55.00............... 12.00%
90.00................. 55.00............... 12.00%
100.00............... 55.00............... 12.00%

 

[FCXoptions]

Yield = 55/455 = 12.1% in 233 days or 18.9% annualized
Prob = 77%

77% probability of a 12.1% payout...my math might be wrong, but sounds like the house wins.