Investors eyeing a purchase of Xylem Inc. (XYL) shares, but tentative about paying the going market price of $27.59/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 $25 strike, which has a bid at the time of this writing of 70 cents. Collecting that bid as the premium represents a 2.8% return against the $25 commitment, or a 5% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Purchase Xylem At $25, Earn 5% Annualized
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