Investors considering a purchase of Star Scientific, Inc. (STSI) stock, but cautious about paying the going market price of $1.40/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 $1 strike, which has a bid at the time of this writing of 30 cents. Collecting that bid as the premium represents a 30% return against the $1 commitment, or a 18.2% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Purchase Star Scientific At $1, Earn 30%
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