Investors considering a purchase of DXP Enterprises, Inc. (DXPE) stock, but cautious about paying the going market price of $70.98/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 $70 strike, which has a bid at the time of this writing of $5.80. Collecting that bid as the premium represents a 8.3% return against the $70 commitment, or a 14.3% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Buy DXP Enterprises At $70, Earn 14.3% Annualized
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