Investors considering a purchase of BGC Partners, Inc. (NASD: BGCP) stock, but tentative about paying the going market price of $6.10/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 $5 strike, which has a bid at the time of this writing of 20 cents. Collecting that bid as the premium represents a 4% return against the $5 commitment, or a 10.7% annualized rate of return (a...
Investors considering a purchase of BGC Partners, Inc. (NASD: BGCP) stock, but tentative about paying the going market price of $6.10/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 $5 strike, which has a bid at the time of this writing of 20 cents. Collecting that bid as the premium represents a 4% return against the $5 commitment, or a 10.7% annualized rate of return (a...
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