Investors eyeing a purchase of NRG Energy Inc (NYSE: NRG) shares, but tentative about paying the going market price of $27.10/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 $18 strike, which has a bid at the time of this writing of $1.00. Collecting that bid as the premium represents a 5.6% return against the $18 commitment, or a 3.4% annualized rate of return (at St...
Investors eyeing a purchase of NRG Energy Inc (NYSE: NRG) shares, but tentative about paying the going market price of $27.10/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 $18 strike, which has a bid at the time of this writing of $1.00. Collecting that bid as the premium represents a 5.6% return against the $18 commitment, or a 3.4% annualized rate of return (at St...
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