Investors eyeing a purchase of Northeast Utilities (NU) shares, but cautious about paying the going market price of $46.50/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 $40 strike, which has a bid at the time of this writing of 30 cents. Collecting that bid as the premium represents a 0.8% return against the $40 commitment, or a 1.3% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Agree To Buy Northeast Utilities At $40, Earn 1.3% Annualized Using Options
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