Investors considering a purchase of Bridgepoint Education, Inc. (BPI) stock, but tentative about paying the going market price of $12.17/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the August put at the $9 strike, which has a bid at the time of this writing of 65 cents. Collecting that bid as the premium represents a 7.2% return against the $9 commitment, or a 35.1% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Buy Bridgepoint Education At $9, Earn 35.1% Annualized
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