Investors eyeing a purchase of PACCAR Inc. (NASD: PCAR) shares, but cautious about paying the going market price of $52.89/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 $34.20 strike, which has a bid at the time of this writing of $1.90. Collecting that bid as the premium represents a 5.6% return against the $34.20 commitment, or a 3.4% annualized rate of return (at...
Investors eyeing a purchase of PACCAR Inc. (NASD: PCAR) shares, but cautious about paying the going market price of $52.89/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 $34.20 strike, which has a bid at the time of this writing of $1.90. Collecting that bid as the premium represents a 5.6% return against the $34.20 commitment, or a 3.4% annualized rate of return (at...
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