Investors considering a purchase of Cabot Oil & Gas Corp. (COG) shares, but tentative about paying the going market price of $72.18/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 $45 strike, which has a bid at the time of this writing of $3.00. Collecting that bid as the premium represents a 6.7% return against the $45 commitment, or a 4.1% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Agree To Buy Cabot Oil & Gas At $45, Earn 6.7%
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts