Investors eyeing a purchase of Rackspace Hosting Inc (NYSE: RAX) stock, but cautious about paying the going market price of $35.58/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 $25 strike, which has a bid at the time of this writing of $3.00. Collecting that bid as the premium represents a 12% return against the $25 commitment, or a 7.6% annualized rate of return (a...
Investors eyeing a purchase of Rackspace Hosting Inc (NYSE: RAX) stock, but cautious about paying the going market price of $35.58/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 $25 strike, which has a bid at the time of this writing of $3.00. Collecting that bid as the premium represents a 12% return against the $25 commitment, or a 7.6% annualized rate of return (a...
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