Investors considering a purchase of Rex Energy Corp (NASD: REXX) shares, but cautious about paying the going market price of $18.36/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 $15 strike, which has a bid at the time of this writing of 70 cents. Collecting that bid as the premium represents a 4.7% return against the $15 commitment, or a 9.9% annualized rate of return (...
Investors considering a purchase of Rex Energy Corp (NASD: REXX) shares, but cautious about paying the going market price of $18.36/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 $15 strike, which has a bid at the time of this writing of 70 cents. Collecting that bid as the premium represents a 4.7% return against the $15 commitment, or a 9.9% annualized rate of return (...
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