Tuesday, December 30, 2014

Trade summary: boozy new year

A small trade on DEO Diageo LLC. (Purveyors of fine boozy spirits world-wide)

The brick:


2 contracts DEO FEB $110/105
Current stock price $114.50 (at time of trade)
Max profit $146.83
Max loss (1000-146.83) $853.17
Days to expiry: 52
Projections for worthless expiry:
ROC: (return on capital) 17%
ROR: (annualized rate of return) 121%
Approximately 5% downside protection.
In the spirit of new years' celebrations with champagne, this is my festive trade of the season.


Stay hungry my friends!  (And thirsty... buy DEO stuff!!!)


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