Commit To Purchase Coach At $45, Earn 8.4%

Investors considering a purchase of Coach, Inc. (NYSE: COH) shares, but cautious about paying the going market price of $58.99/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 $45 strike, which has a bid at the time of this writing of $3.80. Collecting that bid as the premium represents a 8.4% return against the $45 commitment, or a 5.2% annualized rate of return (at S...