Investors considering a purchase of Abraxas Petroleum Corp. (AXAS) stock, but cautious about paying the going market price of $2.59/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 $2.50 strike, which has a bid at the time of this writing of 30 cents. Collecting that bid as the premium represents a 12% return against the $2.50 commitment, or a 19.1% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Purchase Abraxas Petroleum Corp. At $2.50, Earn 19.1% Annualized
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