Investors considering a purchase of Mattress Firm Holding Corp (MFRM) shares, but tentative about paying the going market price of $39.68/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 $30 strike, which has a bid at the time of this writing of $1.55. Collecting that bid as the premium represents a 5.2% return against the $30 commitment, or a 9.2% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Purchase Mattress Firm Holding Corp At $30, Earn 9.2% Annualized
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