Investors considering a purchase of Furiex Pharmaceuticals Inc (FURX) stock, but tentative about paying the going market price of $49.35/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 $45 strike, which has a bid at the time of this writing of $3.20. Collecting that bid as the premium represents a 7.1% return against the $45 commitment, or a 14.7% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Buy Furiex Pharmaceuticals At $45, Earn 14.7% Annualized
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