Investors eyeing a purchase of Prudential Financial, Inc. (NYSE: PRU) stock, but tentative about paying the going market price of $68.45/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 $42.50 strike, which has a bid at the time of this writing of $2.50. Collecting that bid as the premium represents a 5.9% return against the $42.50 commitment, or a 3.6% annualized rate...
Investors eyeing a purchase of Prudential Financial, Inc. (NYSE: PRU) stock, but tentative about paying the going market price of $68.45/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 $42.50 strike, which has a bid at the time of this writing of $2.50. Collecting that bid as the premium represents a 5.9% return against the $42.50 commitment, or a 3.6% annualized rate...
Share this Article
Recommended