Investors eyeing a purchase of Cobalt International Energy Inc. (CIE) shares, but tentative about paying the going market price of $26.01/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 $20 strike, which has a bid at the time of this writing of $1.35. Collecting that bid as the premium represents a 6.8% return against the $20 commitment, or a 11.6% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Buy Cobalt International Energy At $20, Earn 11.6% Annualized
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