Investors considering a purchase of Western Asset Mortgage Capital Corp (NYSE: WMC) stock, but cautious about paying the going market price of $15.37/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 $12.50 strike, which has a bid at the time of this writing of 75 cents. Collecting that bid as the premium represents a 6% return against the $12.50 commitment, or a 11.1% ...
Commit To Purchase Western Asset Mortgage Capital At $12.50, Earn 11.1% Annualized
Forbes - 5 Jul 2013 18:02
Investors considering a purchase of Western Asset Mortgage Capital Corp (NYSE: WMC) stock, but cautious about paying the going market price of $15.37/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 $12.50 strike, which has a bid at the time of this writing of 75 cents. Collecting that bid as the premium represents a 6% return against the $12.50 commitment, or a 11.1% ...
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