Investors eyeing a purchase of SUPERVALU Inc. (SVU) shares, but tentative about paying the going market price of $6.42/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the January 2015 put at the $5 strike, which has a bid at the time of this writing of 65 cents. Collecting that bid as the premium represents a 13% return against the $5 commitment, or a 11.9% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Purchase SUPERVALU At $5, Earn 13% Using Options
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