Investors eyeing a purchase of Owens-Illinois, Inc. (OI) shares, but tentative about paying the going market price of $26.88/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 $24 strike, which has a bid at the time of this writing of $1.35. Collecting that bid as the premium represents a 5.6% return against the $24 commitment, or a 9.7% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Purchase Owens-Illinois At $24, Earn 9.7% Annualized
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