Investors eyeing a purchase of Goodrich Petroleum Corp. (GDP) stock, but tentative about paying the going market price of $12.50/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 $7.50 strike, which has a bid at the time of this writing of $1.15. Collecting that bid as the premium represents a 15.3% return against the $7.50 commitment, or a 9.4% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Purchase Goodrich Petroleum Corp. At $7.50, Earn 15.3%
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