Investors eyeing a purchase of Rackspace Hosting Inc (RAX) shares, but tentative about paying the going market price of $38.06/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 $25 strike, which has a bid at the time of this writing of $2.90. Collecting that bid as the premium represents a 11.6% return against the $25 commitment, or a 5.8% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Buy Rackspace Hosting At $25, Earn 11.6% Using Options
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