Commit To Purchase Outerwall At $40, Earn 8%

Investors eyeing a purchase of Outerwall Inc (NASD: OUTR) shares, but tentative about paying the going market price of $61.49/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the January 2015 put at the $40 strike, which has a bid at the time of this writing of $3.20. Collecting that bid as the premium represents a 8% return against the $40 commitment, or a 5.2% annualized rate of return (at Stoc...