Investors considering a purchase of Finisar Corp (NASD: FNSR) shares, but cautious about paying the going market price of $14.10/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 $8 strike, which has a bid at the time of this writing of 85 cents. Collecting that bid as the premium represents a 10.6% return against the $8 commitment, or a 6.6% annualized rate of return (...
Investors considering a purchase of Finisar Corp (NASD: FNSR) shares, but cautious about paying the going market price of $14.10/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 $8 strike, which has a bid at the time of this writing of 85 cents. Collecting that bid as the premium represents a 10.6% return against the $8 commitment, or a 6.6% annualized rate of return (...
Share this Article
Recommended