Investors eyeing a purchase of hhgregg Inc (HGG) shares, but cautious about paying the going market price of $17.01/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 $14 strike, which has a bid at the time of this writing of $1.15. Collecting that bid as the premium represents a 8.2% return against the $14 commitment, or a 14.1% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Purchase Hhgregg At $14, Earn 14.1% Annualized
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