Investors eyeing a purchase of Plum Creek Timber Co., Inc. (PCL) shares, but cautious about paying the going market price of $44.70/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the February 2015 put at the $40 strike, which has a bid at the time of this writing of $1.10. Collecting that bid as the premium represents a 2.8% return against the $40 commitment, or a 4.2% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Purchase Plum Creek Timber At $40, Earn 4.2% Annualized 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
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.