Investors eyeing a purchase of Cray (CRAY) shares, but tentative about paying the going market price of $29.70/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the April put at the $25 strike, which has a bid at the time of this writing of 95 cents. Collecting that bid as the premium represents a 3.8% return against the $25 commitment, or a 17.8% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Buy Cray At $25, Earn 17.8% Annualized Using Options
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