Investors considering a purchase of American Railcar Industries Inc (ARII) stock, but cautious about paying the going market price of $64.05/share, 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 $50 strike, which has a bid at the time of this writing of $2.10. Collecting that bid as the premium represents a 4.2% return against the $50 commitment, or a 7.4% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Purchase American Railcar Industries At $50, Earn 7.4% Annualized Using Options
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