Investors eyeing a purchase of Zynga Inc (NASD: ZNGA) stock, but cautious about paying the going market price of $3.00/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 $2 strike, which has a bid at the time of this writing of 38 cents. Collecting that bid as the premium represents a 19% return against the $2 commitment, or a 11.7% annualized rate of return (at Stock Op...
Investors eyeing a purchase of Zynga Inc (NASD: ZNGA) stock, but cautious about paying the going market price of $3.00/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 $2 strike, which has a bid at the time of this writing of 38 cents. Collecting that bid as the premium represents a 19% return against the $2 commitment, or a 11.7% annualized rate of return (at Stock Op...
Share this Article
Recommended