Investors considering a purchase of Engility Holdings Inc. (EGL) shares, but tentative about paying the going market price of $34.37/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the February 2014 put at the $30 strike, which has a bid at the time of this writing of 95 cents. Collecting that bid as the premium represents a 3.2% return against the $30 commitment, or a 6.3% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Buy Engility Holdings At $30, Earn 6.3% Annualized
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