Commit To Purchase Regions Financial Corp At $7, Earn 7.9%

Investors considering a purchase of Regions Financial Corp (NYSE: RF) stock, but cautious about paying the going market price of $9.30/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 $7 strike, which has a bid at the time of this writing of 55 cents. Collecting that bid as the premium represents a 7.9% return against the $7 commitment, or a 4.8% annualized rate of ret...