Investors considering a purchase of Skullcandy Inc (SKUL) shares, but cautious about paying the going market price of $5.87/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 $3.50 strike, which has a bid at the time of this writing of 60 cents. Collecting that bid as the premium represents a 17.1% return against the $3.50 commitment, or a 10.5% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Buy Skullcandy At $3.50, Earn 17.1%
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