Investors considering a purchase of Cree, Inc. (NASD: CREE) shares, but tentative about paying the going market price of $63.61/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 $42 strike, which has a bid at the time of this writing of $4.25. Collecting that bid as the premium represents a 10.1% return against the $42 commitment, or a 6.4% annualized rate of return (at...
Investors considering a purchase of Cree, Inc. (NASD: CREE) shares, but tentative about paying the going market price of $63.61/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 $42 strike, which has a bid at the time of this writing of $4.25. Collecting that bid as the premium represents a 10.1% return against the $42 commitment, or a 6.4% annualized rate of return (at...
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