Investors considering a purchase of Headwaters Inc (HW) stock, but cautious about paying the going market price of $8.53/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the February 2014 put at the $7 strike, which has a bid at the time of this writing of 30 cents. Collecting that bid as the premium represents a 4.3% return against the $7 commitment, or a 11.5% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Purchase Headwaters At $7, Earn 11.5% Annualized
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