Investors eyeing a purchase of Universal Display Corp. (PANL) stock, but cautious about paying the going market price of $27.84/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 $15 strike, which has a bid at the time of this writing of $1.85. Collecting that bid as the premium represents a 12.3% return against the $15 commitment, or a 7.6% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Buy Universal Display Corp. At $15, Earn 12.3%
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