WETF

[oldnemesis]

http://blogs.barrons.com/focusonfun...ill-fall-42-in-12-months/?mod=BOL_hp_blog_fof

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

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

Trade:
With WETF at 12.07
Jan '17 16.75/21.75 bear call spread for a net credit of $50
Yield = 50/450 = 11.1% in 303 days or 13.4% annualized
Prob = 81%
Expectation = .81(50) - .08(450) - .11(225) = 40.5 - 36 - 24.8 = -20.3

Price......... Profit / Loss........... ROM %
9.05................. 50.00............. 11.10%
12.00............... 50.00............. 11.10%
15.00............... 50.00............. 11.10%
16.75............... 50.00............. 11.10%
17.25................. 0.00............... 0.00%
19.86............. (261.00)........... -52.20%
21.75............. (450.00)........... -88.90%
25.00............. (450.00)........... -88.90%
30.00............. (450.00)........... -88.90%