Investors eyeing a purchase of BancorpSouth Inc. (BXS) shares, but cautious about paying the going market price of $19.95/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the April 2014 put at the $20 strike, which has a bid at the time of this writing of $1.35. Collecting that bid as the premium represents a 6.8% return against the $20 commitment, or a 10.2% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Purchase BancorpSouth At $20, Earn 10.2% Annualized
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