Investors eyeing a purchase of SPS Commerce, Inc. (SPSC) shares, but tentative about paying the going market price of $56.54/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 $50 strike, which has a bid at the time of this writing of $2.40. Collecting that bid as the premium represents a 4.8% return against the $50 commitment, or a 9.9% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Buy SPS Commerce At $50, Earn 9.9% Annualized
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