Investors eyeing a purchase of Alpha Natural Resources Inc (ANR) stock, but tentative about paying the going market price of $6.71/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 $3 strike, which has a bid at the time of this writing of 41 cents. Collecting that bid as the premium represents a 13.7% return against the $3 commitment, or a 8.4% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Buy Alpha Natural Resources At $3, Earn 13.7%
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