Investors eyeing a purchase of United Rentals, Inc. (URI) shares, but cautious about paying the going market price of $51.16/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 $35 strike, which has a bid at the time of this writing of $4.30. Collecting that bid as the premium represents a 12.3% return against the $35 commitment, or a 7.8% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Buy United Rentals At $35, Earn 12.3%
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