Investors eyeing a purchase of Capital One Financial Corp (NYSE: COF) shares, but tentative about paying the going market price of $60.35/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 $3.35. Collecting that bid as the premium represents a 7.4% return against the $45 commitment, or a 4.6% annualized rate of r...
Investors eyeing a purchase of Capital One Financial Corp (NYSE: COF) shares, but tentative about paying the going market price of $60.35/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 $3.35. Collecting that bid as the premium represents a 7.4% return against the $45 commitment, or a 4.6% annualized rate of r...
Share this Article
Recommended