Sunday, March 14, 2010

[ConservativeOptionStrategies] CSP -- BBY with protection

 







 
The april BBY37 put @$.51 coupled with the apr 35 @$0.25  nets $0.26 giving a 14.9%  (.26 income/1.76 risk) yield.  if  BBY stays above 37.    BBY is curently @ $40.12 -- this is almost 10% downside protection with a worstcase loss of $1.74 (actually $174/contract)  Or you can buy BBY @ 37.
 
Options House gives it a current 78% probability of success -- and that allows for no mods
 
Chart for Best Buy Co. Inc. (BBY)
 
 


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