Investors considering a purchase of NPS Pharmaceuticals Inc. (NPSP) shares, but tentative about paying the going market price of $35.63/share, 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 $23 strike, which has a bid at the time of this writing of $3.10. Collecting that bid as the premium represents a 13.5% return against the $23 commitment, or a 6.8% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Buy NPS Pharmaceuticals At $23, Earn 13.5% Using Options
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