Investors considering a purchase of CSX Corp. (NYSE: CSX) shares, but cautious about paying the going market price of $25.07/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 $20 strike, which has a bid at the time of this writing of $1.55. Collecting that bid as the premium represents a 7.8% return against the $20 commitment, or a 4.8% annualized rate of return (at Sto...
Investors considering a purchase of CSX Corp. (NYSE: CSX) shares, but cautious about paying the going market price of $25.07/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 $20 strike, which has a bid at the time of this writing of $1.55. Collecting that bid as the premium represents a 7.8% return against the $20 commitment, or a 4.8% annualized rate of return (at Sto...
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