Investors eyeing a purchase of Callon Petroleum Co. (CPE) shares, but cautious about paying the going market price of $4.06/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 $2.50 strike, which has a bid at the time of this writing of 5 cents. Collecting that bid as the premium represents a 2% return against the $2.50 commitment, or a 4.3% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Buy Callon Petroleum At $2.50, Earn 4.3% Annualized
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