Investors considering a purchase of Gogo (GOGO) stock, but cautious about paying the going market price of $18.99/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 $14 strike, which has a bid at the time of this writing of $1.55. Collecting that bid as the premium represents a 11.1% return against the $14 commitment, or a 17.4% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Commit To Buy Gogo At $14, Earn 17.4% Annualized Using Options
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