Investors considering a purchase of Greenbrier Companies Inc (GBX) shares, but tentative about paying the going market price of $25.65/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 $20 strike, which has a bid at the time of this writing of 95 cents. Collecting that bid as the premium represents a 4.8% return against the $20 commitment, or a 7.2% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Buy Greenbrier Companies At $20, Earn 7.2% Annualized Using Options
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