Investors eyeing a purchase of Peregrine Semiconductor Corp (PSMI) stock, but cautious about paying the going market price of $8.25/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the July 2014 put at the $7.50 strike, which has a bid at the time of this writing of 95 cents. Collecting that bid as the premium represents a 12.7% return against the $7.50 commitment, or a 19.1% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Buy Peregrine Semiconductor Corp At $7.50, Earn 19.1% Annualized Using Options
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