Commit To Buy Pentair At $55, Earn 14.3% Annualized

Investors eyeing a purchase of Pentair Ltd (NYSE: PNR) shares, but tentative about paying the going market price of $56.82/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the November put at the $55 strike, which has a bid at the time of this writing of $3.10. Collecting that bid as the premium represents a 5.6% return against the $55 commitment, or a 14.3% annualized rate of return (at Stock Op...