PDCO

[oldnemesis]

http://finance.yahoo.com/news/patterson-companies-beats-q3-earnings-161804789.html

http://www.investors.com/research/i...ves-growth/?ven=YahooCP&src=AURLLED&ven=yahoo

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

http://finance.yahoo.com/q/is?s=PDCO+Income+Statement&annual

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

Trade:
With PDCO at 44.34
Jul 38/33 bull put spread for a net credit of $25
Yield = 25/475 = 5.3% in 125 days or 15.4% annualized
Prob = 88.6%
Expectation = .886(25) - .01(475) - .10(238) = 22.15 - 4.75 - 23.8 = -6.4

Price............... Profit / Loss.......... ROM %
25.00................... (475.00)........... -94.70%
30.00................... (475.00)........... -94.70%
33.00................... (475.00)........... -94.70%
36.83..................... (91.60)........... -18.32%
37.75........................ 0.00................ 0.00%
38.00...................... 25.00................ 5.30%
43.00...................... 25.00................ 5.30%
50.00...................... 25.00................ 5.30%
55.00...................... 25.00................ 5.30%

 

[oldnemesis]

Usually I do not show stocks like PDCO as income generators because such stocks typically have too much volatility to be used for that purpose. PDCO however actually is not that volatile having a beta of just .93...actually lower than the DOW index. Besides I am using a very short (for me) trade which I may renew if things stay stable for PDCO. Maybe it's stability is from it's diversification into dental and pets. That's pretty diverse to me.