Commit To Purchase Zimmer Holdings At $70, Earn 8.7% Annualized

Investors considering a purchase of Zimmer Holdings, Inc. (NYSE: ZMH) shares, but cautious about paying the going market price of $75.10/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the December put at the $70 strike, which has a bid at the time of this writing of $3.00. Collecting that bid as the premium represents a 4.3% return against the $70 commitment, or a 8.7% annualized rate of return...