Investors eyeing a purchase of Multimedia Games Holding Company, Inc. (MGAM) shares, but cautious about paying the going market price of $34.77/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 $1.25. Collecting that bid as the premium represents a 5% return against the $25 commitment, or a 9.2% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Buy Multimedia Games Holding Company At $25, Earn 9.2% Annualized
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