Investors eyeing a purchase of RadioShack Corp. (RSH) shares, but cautious about paying the going market price of $3.88/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the January 2015 put at the $2 strike, which has a bid at the time of this writing of 49 cents. Collecting that bid as the premium represents a 24.5% return against the $2 commitment, or a 14.8% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Buy RadioShack Corp. At $2, Earn 24.5%
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