Investors considering a purchase of Entropic Communications, Inc. (ENTR) stock, but cautious about paying the going market price of $4.25/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 $4 strike, which has a bid at the time of this writing of 45 cents. Collecting that bid as the premium represents a 11.2% return against the $4 commitment, or a 18.2% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Purchase Entropic Communications At $4, Earn 18.2% Annualized
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