Investors considering a purchase of HMS Holdings Corp (HMSY) stock, but tentative about paying the going market price of $21.48/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 $17.50 strike, which has a bid at the time of this writing of 95 cents. Collecting that bid as the premium represents a 5.4% return against the $17.50 commitment, or a 8.5% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Buy HMS Holdings Corp At $17.50, Earn 8.5% Annualized Using Options
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