Investors eyeing a purchase of Baker Hughes Inc. (NYSE: BHI) shares, but tentative about paying the going market price of $45.50/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 $30 strike, which has a bid at the time of this writing of $1.75. Collecting that bid as the premium represents a 5.8% return against the $30 commitment, or a 3.6% annualized rate of return (at...
Investors eyeing a purchase of Baker Hughes Inc. (NYSE: BHI) shares, but tentative about paying the going market price of $45.50/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 $30 strike, which has a bid at the time of this writing of $1.75. Collecting that bid as the premium represents a 5.8% return against the $30 commitment, or a 3.6% annualized rate of return (at...
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