LH

[oldnemesis]

http://finance.yahoo.com/news/labcorp-lh-tops-q1-earnings-140202812.html

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

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

Trade:
With LH at 123.80
Nov 100/95 bull put spread for a net credit of $50
Yield = 50/450 = 11.1% in 204 days or 19.9% annualized
Prob = 88%
Expectation = .88(50) - .07(450)- .05(225) = 44 - 31.5 - 11.2 = 1.3

Price.............. Profit / Loss........ ROM %
75.00................. (450.00)............. -88.89%
85.00................. (450.00)............. -88.89%
95.00................. (450.00)............. -88.89%
99.50..................... 0.00.................. 0.00%
100.00................. 50.00................ 11.11%
105.00................. 50.00................ 11.11%
120.00................. 50.00................ 11.11%
130.00................. 50.00................ 11.11%
140.00................. 50.00................ 11.11%

filled AT $50 (10.00 AM)