Commit To Purchase Moody's Corp. At $50, Earn 7.8%

Investors considering a purchase of Moody's Corp. (NYSE: MCO) shares, but tentative about paying the going market price of $67.31/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 $50 strike, which has a bid at the time of this writing of $3.90. Collecting that bid as the premium represents a 7.8% return against the $50 commitment, or a 4.8% annualized rate of return (a...