Investors considering a purchase of E*TRADE Financial Corp. (NASD: ETFC) stock, but cautious about paying the going market price of $11.21/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 $7 strike, which has a bid at the time of this writing of 40 cents. Collecting that bid as the premium represents a 5.7% return against the $7 commitment, or a 3.5% annualized rate of...
Investors considering a purchase of E*TRADE Financial Corp. (NASD: ETFC) stock, but cautious about paying the going market price of $11.21/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 $7 strike, which has a bid at the time of this writing of 40 cents. Collecting that bid as the premium represents a 5.7% return against the $7 commitment, or a 3.5% annualized rate of...
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