Commit To Purchase Cabelas At $55, Earn 9.6% Annualized

Investors considering a purchase of Cabelas Inc (NYSE: CAB) shares, but tentative about paying the going market price of $66.09/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 $55 strike, which has a bid at the time of this writing of $2.50. Collecting that bid as the premium represents a 4.5% return against the $55 commitment, or a 9.6% annualized rate of return (at Stoc...