Investors eyeing a purchase of Virginia Commerce Bancorp, Inc. (VCBI) shares, but cautious about paying the going market price of $15.01/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 $15 strike, which has a bid at the time of this writing of 35 cents. Collecting that bid as the premium represents a 2.3% return against the $15 commitment, or a 5.9% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Buy Virginia Commerce Bancorp At $15, Earn 5.9% Annualized
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