Investors eyeing a purchase of Tesco Corp. (TESO) stock, but cautious about paying the going market price of $13.39/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the March 2014 put at the $12.50 strike, which has a bid at the time of this writing of $1.05. Collecting that bid as the premium represents a 8.4% return against the $12.50 commitment, or a 12.8% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Purchase Tesco Corp. At $12.50, Earn 12.8% Annualized
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