Investors considering a purchase of InterMune Inc. (NASD: ITMN) shares, but tentative about paying the going market price of $9.99/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 $5 strike, which has a bid at the time of this writing of $2.23. Collecting that bid as the premium represents a 44.6% return against the $5 commitment, or a 26.9% annualized rate of return (...
Investors considering a purchase of InterMune Inc. (NASD: ITMN) shares, but tentative about paying the going market price of $9.99/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 $5 strike, which has a bid at the time of this writing of $2.23. Collecting that bid as the premium represents a 44.6% return against the $5 commitment, or a 26.9% annualized rate of return (...
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