Investors eyeing a purchase of Marchex Inc (MCHX) shares, but cautious about paying the going market price of $6.00/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the December put at the $5 strike, which has a bid at the time of this writing of 30 cents. Collecting that bid as the premium represents a 6% return against the $5 commitment, or a 13% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Buy Marchex At $5, Earn 13% Annualized
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