Investors considering a purchase of Xerox Corp (XRX) shares, but cautious about paying the going market price of $8.95/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 $5 strike, which has a bid at the time of this writing of 27 cents. Collecting that bid as the premium represents a 5.4% return against the $5 commitment, or a 3.3% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Agree To Purchase Xerox Corp At $5, Earn 5.4%
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