Investors eyeing a purchase of Cree, Inc. (CREE) stock, but cautious about paying the going market price of $59.41/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the January 2015 put at the $42 strike, which has a bid at the time of this writing of $4.20. Collecting that bid as the premium represents a 10% return against the $42 commitment, or a 7.6% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Purchase Cree At $42, Earn 10%
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