Investors eyeing a purchase of AutoNation, Inc. (AN) stock, but tentative about paying the going market price of $41.97/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 $37 strike, which has a bid at the time of this writing of $1.55. Collecting that bid as the premium represents a 4.2% return against the $37 commitment, or a 7.3% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Agree To Buy AutoNation At $37, Earn 7.3% Annualized
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