Commit To Purchase Level 3 Communications At $13, Earn 8.5%

Investors eyeing a purchase of Level 3 Communications, Inc. (NYSE: LVLT) shares, but cautious about paying the going market price of $21.00/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 $13 strike, which has a bid at the time of this writing of $1.10. Collecting that bid as the premium represents a 8.5% return against the $13 commitment, or a 5.4% annualized rate of...