JNJ

[oldnemesis]

http://finance.yahoo.com/news/johnson-johnson-cut-3-000-145718640.html

http://www.fool.com/investing/gener...ce=yahoo&utm_medium=feed&utm_campaign=article

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

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

Trade:
With JNJ at 97.75
Jul 80/75 bull put spread for a net credit of $35
Yield = 35/465 = 7.5% in 178 days or 15.4% annualized
Prob = 89%
Expectation = .89(35) - .05(465) - .06(232) = 31.2 - 23.3 - 13.9 = -6

Price........... Profit / Loss........... ROM %
50.00.............. (465.00)............. -92.50%
70.00.............. (465.00)............. -92.50%
75.00.............. (465.00)............. -92.50%
79.65................... 0.00.................. 0.00%
80.00................. 35.00.................. 7.50%
85.00................. 35.00.................. 7.50%
95.00................. 35.00.................. 7.50%
105.00............... 35.00.................. 7.50%
115.00............... 35.00.................. 7.50%

 

[Zestilio]

so what are the plays here?