Investors considering a purchase of eBay Inc. (NASD: EBAY) stock, but cautious about paying the going market price of $53.04/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 $35 strike, which has a bid at the time of this writing of $2.17. Collecting that bid as the premium represents a 6.2% return against the $35 commitment, or a 3.8% annualized rate of return (at Sto...
Investors considering a purchase of eBay Inc. (NASD: EBAY) stock, but cautious about paying the going market price of $53.04/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 $35 strike, which has a bid at the time of this writing of $2.17. Collecting that bid as the premium represents a 6.2% return against the $35 commitment, or a 3.8% annualized rate of return (at Sto...
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