Looking back to 67 days ago, Tsakos Energy Navigation Ltd. (TNP) priced a 11,300,752 share secondary stock offering at $6.65 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 Tuesday, the stock is now 7.7% higher than the offering price.Investors who did not participate in the offering but would be a buyer of TNP 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 $5 strike, which has a bid at the time of this writing of 5 cents. That would result in a cost basis of $4.95 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 1% return against the $5.00 purchase commitment, or a 2.2% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Use Options For a Chance To Buy TNP at a 32% Discount
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