Investors eyeing a purchase of Lionbridge Technologies Inc. (LIOX) stock, but cautious about paying the going market price of $3.04/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the September put at the $2.50 strike, which has a bid at the time of this writing of 10 cents. Collecting that bid as the premium represents a 4% return against the $2.50 commitment, or a 16.6% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Purchase Lionbridge Technologies At $2.50, Earn 16.6% Annualized
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