Investors eyeing a purchase of SunTrust Banks, Inc. (NYSE: STI) stock, but tentative about paying the going market price of $31.51/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 $23 strike, which has a bid at the time of this writing of $1.60. Collecting that bid as the premium represents a 7% return against the $23 commitment, or a 4.3% annualized rate of return (at...
Investors eyeing a purchase of SunTrust Banks, Inc. (NYSE: STI) stock, but tentative about paying the going market price of $31.51/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 $23 strike, which has a bid at the time of this writing of $1.60. Collecting that bid as the premium represents a 7% return against the $23 commitment, or a 4.3% annualized rate of return (at...
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