Investors eyeing a purchase of Textron (TXT) stock, but tentative about paying the going market price of $35.59/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 $1.69. Collecting that bid as the premium represents a 6.8% return against the $25 commitment, or a 3.5% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Buy Textron At $25, Earn 6.8% Using Options
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