Investors eyeing a purchase of Silicon Graphics International Corp (SGI) stock, but tentative about paying the going market price of $16.23/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the March 2014 put at the $14 strike, which has a bid at the time of this writing of $1.05. Collecting that bid as the premium represents a 7.5% return against the $14 commitment, or a 16.1% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Buy Silicon Graphics International Corp At $14, Earn 16.1% Annualized
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