Investors considering a purchase of BofI Holding, Inc. (BOFI) stock, but cautious about paying the going market price of $75.77/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the January 2015 put at the $65 strike, which has a bid at the time of this writing of $4.80. Collecting that bid as the premium represents a 7.4% return against the $65 commitment, or a 11.8% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Buy BofI Holding At $65, Earn 11.8% Annualized Using Options
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