Investors eyeing a purchase of KLA-Tencor Corp. (NASD: KLAC) shares, but tentative about paying the going market price of $56.52/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 $45 strike, which has a bid at the time of this writing of $4.00. Collecting that bid as the premium represents a 8.9% return against the $45 commitment, or a 5.5% annualized rate of return (at...
Investors eyeing a purchase of KLA-Tencor Corp. (NASD: KLAC) shares, but tentative about paying the going market price of $56.52/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 $45 strike, which has a bid at the time of this writing of $4.00. Collecting that bid as the premium represents a 8.9% return against the $45 commitment, or a 5.5% annualized rate of return (at...
Share this Article
Recommended