K

[oldnemesis]

http://finance.yahoo.com/news/kellogg-buy-solid-q4-cereal-200008084.html

http://www.msn.com/en-us/money/topstories/play-defense-and-buy-kellogg-ahead-of-earnings/ar-BBplkCc

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

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

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

http://finance.yahoo.com/echarts?s=K+Interactive#{"range":"5y","allowChartStacking":true}

Trade:
With K at 75.79
Jan '17 55/50 bull put spread for a net credit of $40
Yield = 40/460 = 8.7% in 336 days or 9.4% annualized
Prob = 94.8%
Expectation = .95(40) - .02(460) - .03(230) = 38 - 9.2 - 6.9 = 22

Price................ Profit / Loss........... ROM %
40.00................... (460.00).............. -91.30%
45.00................... (460.00).............. -91.30%
50.00................... (460.00).............. -91.30%
54.60........................ 0.00.................. 0.00%
55.00...................... 40.00.................. 8.70%
60.00...................... 40.00.................. 8.70%
70.00...................... 40.00.................. 8.70%
80.00...................... 40.00.................. 8.70%
90.00...................... 40.00.................. 8.70%

30 year treasuries are yielding 2.6%
https://www.treasury.gov/resource-c...interest-rates/Pages/TextView.aspx?data=yield

 

[dealmaker]

https://www.institutionalinvestor.c...e=CampaignMonitorEmail&utm_term=Cereal Killer