Investors eyeing a purchase of Vanguard Health Systems, Inc. (VHS) stock, but cautious about paying the going market price of $20.91/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 10 cents. Collecting that bid as the premium represents a 0.5% return against the $20 commitment, or a 0.8% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Purchase Vanguard Health Systems At $20, Earn 0.8% Annualized
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts