Commit To Purchase Pinnacle Entertainment At $18, Earn 12.8% Annualized

Investors considering a purchase of Pinnacle Entertainment Inc (NYSE: PNK) stock, but cautious about paying the going market price of $20.50/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 $18 strike, which has a bid at the time of this writing of $1.05. Collecting that bid as the premium represents a 5.8% return against the $18 commitment, or a 12.8% annualized rate of r...