JNJ

[oldnemesis]

http://www.fool.com/investing/2016/...utm_medium=feed&utm_source=yahoo-2&yptr=yahoo

http://www.fool.com/investing/2016/...utm_medium=feed&utm_source=yahoo-2&yptr=yahoo

http://www.msn.com/en-us/money/stockdetails/financials/fi-126.1.JNJ.NYS

http://finance.yahoo.com/chart/JNJ#eyJtdWx0aUNvbG9yTGluZSI6ZmFsc2UsImJvbGxpbmdlclVwcGVyQ29sb3IiOiIjZTIwMDgxIiwiYm9sbGluZ2VyTG93ZXJDb2xvciI6IiM5NTUyZmYiLCJtZmlMaW5lQ29sb3IiOiIjNDVlM2ZmIiwibWFjZERpdmVyZ2VuY2VDb2xvciI6IiNmZjdiMTIiLCJtYWNkTWFjZENvbG9yIjoiIzc4N2Q4MiIsIm1hY2RTaWduYWxDb2xvciI6IiMwMDAwMDAiLCJyc2lMaW5lQ29sb3IiOiIjZmZiNzAwIiwic3RvY2hLTGluZUNvbG9yIjoiI2ZmYjcwMCIsInN0b2NoRExpbmVDb2xvciI6IiM0NWUzZmYiLCJyYW5nZSI6IjJ5IiwiYWxsb3dDaGFydFN0YWNraW5nIjp0cnVlfQ==

http://finance.yahoo.com/quote/jnj?ltr=1

Trade:
With JNJ at 119.92
Jan '18 95/92.5 bull put spread for a net credit of $37
Yield = 37/213 = 17.3% in 515 days or 12.3% annualized
Prob = 96%
Expectation = .96(37) - .03(213) - .01(107) = 35.5 - 6.4 - 1.1 = 27.5

Price............ Profit / Loss........ ROM %
65.00................ (213.00)........... -82.70%
85.00................ (213.00)........... -82.70%
92.50................ (213.00)........... -82.70%
94.63..................... 0.00............... 0.00%
95.00.................... 37.00............. 17.30%
100.00.................. 37.00............. 17.30%
120.00.................. 37.00............. 17.30%
125.00.................. 37.00............. 17.30%
130.00.................. 37.00............. 17.30%

 

[oldnemesis]

Unable to get a fill on the JNJ trade as listed above. I will rethink a JNJ position

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

JNJ like a lot of stocks is 'overbought' and simply is not offering an entry price here.

 

[oldnemesis]

New Trade:
With JNJ at 118.57
June '17 95/90 bull put spread for a net credit of $35
Yield = 35/465 = 7.5% in 295 days or 9.3% annualized
Prob = 98%
Expectation = .98(35) - .01(465) - .01(233) = 34.3 - 4.65 - 2.33 = 27.3

Price......... Profit / Loss.......... ROM %
65.00............. (465.00)............ -92.50%
85.00............. (465.00)............ -92.50%
90.00............. (465.00)............ -92.50%
94.65.................. 0.00................ 0.00%
95.00................. 35.00............... 7.50%
100.00............... 35.00............... 7.50%
115.00............... 35.00............... 7.50%
130.00............... 35.00............... 7.50%
145.00............... 35.00............... 7.50%