Investors considering a purchase of Starbucks Corp. (NASD: SBUX) shares, but tentative about paying the going market price of $66.15/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 $50 strike, which has a bid at the time of this writing of $3.10. Collecting that bid as the premium represents a 6.2% return against the $50 commitment, or a 3.9% annualized rate of return...
Investors considering a purchase of Starbucks Corp. (NASD: SBUX) shares, but tentative about paying the going market price of $66.15/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 $50 strike, which has a bid at the time of this writing of $3.10. Collecting that bid as the premium represents a 6.2% return against the $50 commitment, or a 3.9% annualized rate of return...
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