I prefer to drink Coke, but think Pepsi might be a better investment. Everyone knows about Pepsi so I'm not going to say much about it. Here is the buy-write:
Buy 100 PEP @ 63.94: ($6,394)
Sell 1 Jan 13 62.5 call @ 6.54 654
Sell 1 Jan 13 65 put @ 8.00 800
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Total outlay: ($4,944)
Potential return: $1,158 plus any dividends collected over the next 18+months. After dividends, the return is around 30% on a stock that doesn't have to go up at all from todays price.
Break-even on the trade is 57.22 or about 10% below current prices.
Disclosure: I may or may not own any of the securities mentioned and am not an investment advisor. Please do your own due diligence before investing in any securities mentioned.
Showing posts with label PEP. Show all posts
Showing posts with label PEP. Show all posts