Investors eyeing a purchase of Annaly Capital Management Inc (NLY) stock, but cautious about paying the going market price of $11.42/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 $8 strike, which has a bid at the time of this writing of 61 cents. Collecting that bid as the premium represents a 7.6% return against the $8 commitment, or a 4.3% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Buy Annaly Capital Management At $8, Earn 7.6% Using Options
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