Investors eyeing a purchase of Waters Corp. (WAT) stock, but cautious about paying the going market price of $105.89/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 $105 strike, which has a bid at the time of this writing of $6.00. Collecting that bid as the premium represents a 5.7% return against the $105 commitment, or a 13.7% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Agree To Purchase Waters Corp. At $105, Earn 13.7% Annualized Using Options
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