Investors considering a purchase of ServiceSource International, Inc. (SREV) shares, but cautious about paying the going market price of $9.21/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 $7.50 strike, which has a bid at the time of this writing of 50 cents. Collecting that bid as the premium represents a 6.7% return against the $7.50 commitment, or a 11.8% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Buy ServiceSource International At $7.50, Earn 11.8% Annualized
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