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January 29, 2009 12:37 EST Related Symbols: ENDP
you're watching:
Mad About Options
An options-related take on Jim Cramer's latest recommendations and analysis on the latest securities and ETFs getting attention on the Street.
A Look at Endo Pharmaceuticals Holdings Inc. (ENDP)
Cramer’s Comments: The stock sells for 10 and a half times estimated earnings.
Jud’s Comments: Looks like Cramer is bullish on ENDP.
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If you AGREE with Cramer…
Strategy: 2 Bull Put Spreads
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| Leg | Action | Expiry | Stk | Call/Put | Strike |
|---|---|---|---|---|---|
| Leg 1 | Buy | Jul | ENDP | Puts | 10 |
| Leg 2 | Sell | Jul | ENDP | Puts | 22.50 |
| Premium: | 20.20 | ||||
| Break Even: | Stock is above 20.10 at expiration | ||||
| Max Gain: | $4.80 minus commissions | ||||
| Max Loss: | $20.20 plus commissions | ||||
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If you DISAGREE with Cramer…
Strategy: Long Put
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|||||
| Leg | Action | Expiry | Stk | Call/Put | Strike |
|---|---|---|---|---|---|
| Leg 1 | Buy | Jul | ENDP | Puts | 20 |
| Premium: | |||||
| Break Even: | Stock is below $17.95 at expiration | ||||
| Max Gain: | $17.95 minus commissions | ||||
| Max Loss: | $2.05 plus commissions | ||||
