Investors eyeing a purchase of Forest Laboratories, Inc. (FRX) stock, but tentative about paying the going market price of $92.24/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the November put at the $87.50 strike, which has a bid at the time of this writing of $4.00. Collecting that bid as the premium represents a 4.6% return against the $87.50 commitment, or a 8.3% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Buy Forest Laboratories At $87.50, Earn 8.3% Annualized Using Options
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