Investors considering a purchase of AbbVie (ABBV) stock, but tentative about paying the going market price of $50.90/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 $42.50 strike, which has a bid at the time of this writing of $4.10. Collecting that bid as the premium represents a 9.7% return against the $42.50 commitment, or a 5.2% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Buy AbbVie At $42.50, Earn 9.7% Using Options
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