Investors eyeing a purchase of Higher One Holdings Inc. (ONE) shares, but tentative about paying the going market price of $11.26/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 $10 strike, which has a bid at the time of this writing of 85 cents. Collecting that bid as the premium represents a 8.5% return against the $10 commitment, or a 13.2% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Purchase Higher One Holdings At $10, Earn 13.2% Annualized
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