Looking back to 116 days ago, Artisan Partners Asset Management Inc (APAM) priced a 4,800,000 share secondary stock offering at $56.00 per share. Buyers in that offering made a considerable investment into the company, expecting that their investment would go up over the course of time and based on early trading on Monday, the stock is now 11.3% above the offering price. It should be noted that investors at the secondary have collected $2.61/share in dividends since the time of their purchase, so they are currently up 16.0% on their purchase from a total return basis.Investors who did not participate in the offering but would be a buyer of APAM at a cheaper price, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the September put at the $53.37 strike, which has a bid at the time of this writing of $2.10. That would result in a cost basis of $51.27 per share before broker commissions in the scenario where the contract is exercised. If the contract is never exercised, the put seller would still keep the premium, which represents a 3.9% return against the $53.37 purchase commitment, or a 6.9% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Use Options For A Chance To Buy APAM At A 19% Discount
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