Investors eyeing a purchase of ARIAD Pharmaceuticals, Inc. (ARIA) stock, but tentative about paying the going market price of $7.14/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 $4.50 strike, which has a bid at the time of this writing of $1.00. Collecting that bid as the premium represents a 22.2% return against the $4.50 commitment, or a 12.9% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Purchase ARIAD Pharmaceuticals At $4.50, Earn 22.2% Using Options
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts