Part six of a series.
music selection: “Ex-Girlfriend” — No Doubt
First up is Medtronic (MDT). The company is widely known as the producer of cardiac pacemakers. Cardiac Rhythm devices are only a third of the story though. The company makes many electronic medical devices. It has fat margins and rewards shareholders. A recent near the money put, MDT160527P00076000, was trading for 1.35 a contract or 14.41% annualized over 45 days. The trade would also sport 3.2% downside protection.
3M Company (MMM) was originally a mining company but is now a well diversified company. It makes abrasives, adhesives, filters, drug delivery systems, cleaning products, and even the granules for roofing shingles. The company provides good international exposure with two thirds of revenue originating outside the United States. A recent near the money put, MMM160527P00167500, was trading for 4.30 a contract or 20.85% annualized over 45 days. The trade would carry 2.86% downside protection.
Microsoft Corporation (MSFT), “Big Softy” needs no introduction around here as it is an Open Position. The company has a wide moat, gushes free cash flow, and rewards shareholders. A recent near the money put, MSFT160527P00054500, was trading for 2.10 a contract. That is an impressive 31.25% annualized over 45 days. The downside protection would be 4.93%.
Devour your prey raptors!