Looking back to 59 days ago, Stratasys, Ltd. (SSYS) priced a 4,500,000 share secondary stock offering at $93.00 per share. Buyers in that offering made a considerable investment into the company, expecting that their investment would go up over the course of time and based on early trading on Monday, the stock is now 28.5% above the offering price.Investors who did not participate in the offering but would be a buyer of SSYS at a cheaper price, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the January 2016 put at the $85 strike, which has a bid at the time of this writing of $12.30. That would result in a cost basis of $72.70 per share before broker commissions in the scenario where the contract is exercised. If the contract is never exercised, the put seller would still keep the premium, which represents a 14.5% return against the $85.00 purchase commitment, or a 6.6% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Use Options For A Chance To Buy SSYS At A 42% Discount
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