Investors eyeing a purchase of OpenTable Inc. (NASD: OPEN) stock, but tentative about paying the going market price of $63.56/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 $47.50 strike, which has a bid at the time of this writing of $5.50. Collecting that bid as the premium represents a 11.6% return against the $47.50 commitment, or a 7.3% annualized rate of return...
Investors eyeing a purchase of OpenTable Inc. (NASD: OPEN) stock, but tentative about paying the going market price of $63.56/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 $47.50 strike, which has a bid at the time of this writing of $5.50. Collecting that bid as the premium represents a 11.6% return against the $47.50 commitment, or a 7.3% annualized rate of return...
Share this Article
Recommended