Investors considering a purchase of Allergan (AGN) stock, but tentative about paying the going market price of $114.53/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 $97.50 strike, which has a bid at the time of this writing of $5.00. Collecting that bid as the premium represents a 5.1% return against the $97.50 commitment, or a 5.2% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Purchase Allergan At $97.50, Earn 5.2% Annualized Using Options
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