|Strike Price||Option Price||Cost Basis if exercised||Total Return if Expires||CAGR if Expires||YOC if exercised|
As mentioned in my stock analysis on Procter & Gamble, I would look to start accumulation of shares at $62.50 and lower. I don't like these moves as some that I have previously shown for put option plays mainly because the return is fairly low should the shares not reach your strike price. Especially since you would be tying up the money for 75% of a year. I'll refer to "The Intelligent Investor", my previous post about not waiting if the stock meets your value estimate including a margin of safety. If the option goes unexercised, you would have missed out on 3 dividend payments of $0.562 each from PG. That would effectively lower your cost basis from the current price of
$66.76 to $65.07. Since the option yield, Total Return if Expires, is higher in all cases this might not be that much of an issue. However if it was much closer to the same then I would not be interested in it at all. It's one more thing to think about this move since your return would be below my threshold.
I think the $67.50 put is probably the best option play at this time since it gives a significant return should the option not be exercised. You wouldn't have a realistic chance of the option being exercised too soon despite it currently being in the money, trading below the strike price, since there is significant time value built in to the option premium. With the $67.50 put you would have just over 6% of downside before you would lose money on the trade.
Overall I don't like the current option plays although the $65 is a little interesting since you can get a 7% return on your money which is nothing to laugh at while still getting a entry price below our targeted $62.50 beginning price.