Investors eyeing a purchase of Krispy Kreme Doughnuts (KKD) stock, but tentative about paying the going market price of $18.42/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 $13 strike, which has a bid at the time of this writing of $1.80. Collecting that bid as the premium represents a 13.8% return against the $13 commitment, or a 7.3% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Buy Krispy Kreme Doughnuts At $13, Earn 13.8% Using Options
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