Investors eyeing a purchase of Stone Energy Corp. (SGY) shares, but cautious about paying the going market price of $34.92/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the June 2014 put at the $28 strike, which has a bid at the time of this writing of $1.65. Collecting that bid as the premium represents a 5.9% return against the $28 commitment, or a 9% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Purchase Stone Energy Corp. At $28, Earn 9% Annualized Using Options
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