Investors eyeing a purchase of 1-800 Flowers.com, Inc. (FLWS) stock, but tentative about paying the going market price of $6.77/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 $5 strike, which has a bid at the time of this writing of 10 cents. Collecting that bid as the premium represents a 2% return against the $5 commitment, or a 3.2% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Buy 1-800 Flowers.com At $5, Earn 3.2% Annualized
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