Investors eyeing a purchase of eHealth Inc (EHTH) stock, but tentative about paying the going market price of $22.30/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the February 2014 put at the $17.50 strike, which has a bid at the time of this writing of $1.15. Collecting that bid as the premium represents a 6.6% return against the $17.50 commitment, or a 9.9% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Purchase EHealth At $17.50, Earn 9.9% Annualized
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