Investors eyeing a purchase of Audience Inc (ADNC) shares, but tentative about paying the going market price of $13.51/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 $12.50 strike, which has a bid at the time of this writing of $2.00. Collecting that bid as the premium represents a 16% return against the $12.50 commitment, or a 24.3% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Buy Audience At $12.50, Earn 24.3% Annualized
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