Commit To Purchase Griffon Corp. At $10, Earn 11.1% Annualized

Investors eyeing a purchase of Griffon Corp. (NYSE: GFF) shares, but tentative about paying the going market price of $11.68/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the January 2014 put at the $10 strike, which has a bid at the time of this writing of 60 cents. Collecting that bid as the premium represents a 6% return against the $10 commitment, or a 11.1% annualized rate of return (at S...