Investors considering a purchase of Avis Budget Group (CAR) stock, but cautious about paying the going market price of $50.12/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 $35 strike, which has a bid at the time of this writing of $3.10. Collecting that bid as the premium represents a 8.9% return against the $35 commitment, or a 5% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Buy Avis Budget Group At $35, Earn 8.9% Using Options
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