Nope. Verizon iPhone day!
Showing posts with label VZ. Show all posts
Showing posts with label VZ. Show all posts
Thursday, February 10, 2011
Thursday, February 3, 2011
Verizon is getting the iPhone
Verizon is finally getting the iPhone. This is a good time to do a buy-write on Verizon. It has a forward PE of 13, yields 5.4%, and recently announced a 100M share buyback.
Buy 100 VZ @ $36.35: ($3,635)
Sell 1 Jan 13 $40 call: $215
Sell 1 Jan 13 $35 put: $525
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Total outlay: $2,895
total return if >$40 in Jan 2013: ($365 appreciation + $215 +$525 + $390 dividends) = $1,495 or 52% on a stock that needs to go up by 10% in 2 yrs.
Breakeven: 31.98 or 12% lower than today's price
Buy 100 VZ @ $36.35: ($3,635)
Sell 1 Jan 13 $40 call: $215
Sell 1 Jan 13 $35 put: $525
--------------------------------------------------
Total outlay: $2,895
total return if >$40 in Jan 2013: ($365 appreciation + $215 +$525 + $390 dividends) = $1,495 or 52% on a stock that needs to go up by 10% in 2 yrs.
Breakeven: 31.98 or 12% lower than today's price