Investors eyeing a purchase of Advanced Micro Devices, Inc. (NYSE: AMD) shares, but tentative about paying the going market price of $4.05/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 $2.50 strike, which has a bid at the time of this writing of 43 cents. Collecting that bid as the premium represents a 17.2% return against the $2.50 commitment, or a 10.4% annualized...
Investors eyeing a purchase of Advanced Micro Devices, Inc. (NYSE: AMD) shares, but tentative about paying the going market price of $4.05/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 $2.50 strike, which has a bid at the time of this writing of 43 cents. Collecting that bid as the premium represents a 17.2% return against the $2.50 commitment, or a 10.4% annualized...
Share this Article
Recommended