KR

O

oldnemesis

http://www.bloomberg.com/news/artic...after-grocer-predicts-slower-growth-this-year

http://www.bloomberg.com/gadfly/art...tock-selloff-is-overblown?cmpid=yhoo.headline

http://finance.yahoo.com/news/why-krogers-kr-stock-plummeting-183206980.html

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

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

http://finance.yahoo.com/q/co?s=KR+Competitors

Trade:
With KR at 37.80
Jan '17 30/27.50 bull put spread for a net credit of $30
(bid/ask = 25/55)
Yield = 30/220 = 13.6% in 323 days or 15.4% annualized
Prob = 74%
Expectation = .74(30) - .12(220) - .14(110) = 22.2 - 26.4 - 15.4 = -19.6

Price...... Profit / Loss..... ROM %
20.00.......... (220.00).......... -86.40%
25.00.......... (220.00).......... -86.40%
27.50.......... (220.00).......... -86.40%
29.70............... 0.00.............. 0.00%
30.00............. 30.00............. 13.60%
32.50............. 30.00............. 13.60%
35.00............. 30.00............. 13.60%
40.00............. 30.00............. 13.60%
45.00............. 30.00............. 13.60%
 
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