Investors eyeing a purchase of Power Integrations Inc. (POWI) shares, but cautious about paying the going market price of $53.19/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 $45 strike, which has a bid at the time of this writing of $2.45. Collecting that bid as the premium represents a 5.4% return against the $45 commitment, or a 10.4% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Purchase Power Integrations At $45, Earn 10.4% Annualized
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