Investors eyeing a purchase of Air Methods Corp. (AIRM) stock, but tentative about paying the going market price of $52.86/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the October put at the $40 strike, which has a bid at the time of this writing of $1.75. Collecting that bid as the premium represents a 4.4% return against the $40 commitment, or a 6.8% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Buy Air Methods Corp. At $40, Earn 6.8% Annualized Using Options
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