Investors eyeing a purchase of Ellie Mae Inc (ELLI) shares, but cautious about paying the going market price of $30.92/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 $1.45. Collecting that bid as the premium represents a 5.8% return against the $25 commitment, or a 11% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Buy Ellie Mae At $25, Earn 11% Annualized
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