Investors considering a purchase of Weyerhaeuser Co. (NYSE: WY) stock, but cautious about paying the going market price of $28.35/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 $20 strike, which has a bid at the time of this writing of $1.40. Collecting that bid as the premium represents a 7% return against the $20 commitment, or a 4.3% annualized rate of return (at ...
Investors considering a purchase of Weyerhaeuser Co. (NYSE: WY) stock, but cautious about paying the going market price of $28.35/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 $20 strike, which has a bid at the time of this writing of $1.40. Collecting that bid as the premium represents a 7% return against the $20 commitment, or a 4.3% annualized rate of return (at ...
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