Investors eyeing a purchase of Astex Pharmaceuticals Inc (ASTX) stock, but cautious about paying the going market price of $4.57/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the January 2014 put at the $3.50 strike, which has a bid at the time of this writing of 55 cents. Collecting that bid as the premium represents a 15.7% return against the $3.50 commitment, or a 25.3% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Buy Astex Pharmaceuticals At $3.50, Earn 25.3% Annualized
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