Investors eyeing a purchase of Hovnanian Enterprises, Inc. (HOV) stock, but cautious about paying the going market price of $6.03/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 $4 strike, which has a bid at the time of this writing of 65 cents. Collecting that bid as the premium represents a 16.2% return against the $4 commitment, or a 10% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Purchase Hovnanian Enterprises At $4, Earn 16.2%
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