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
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