Investors considering a purchase of Walter Investment Management Corp (WAC) shares, but tentative about paying the going market price of $38.01/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 $32 strike, which has a bid at the time of this writing of $1.80. Collecting that bid as the premium represents a 5.6% return against the $32 commitment, or a 12.9% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Purchase Walter Investment Management Corp At $32, Earn 12.9% Annualized
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