Investors eyeing a purchase of Cubist Pharmaceuticals Inc. (NASD: CBST) shares, but tentative about paying the going market price of $53.83/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the February 2014 put at the $47 strike, which has a bid at the time of this writing of $3.30. Collecting that bid as the premium represents a 7% return against the $47 commitment, or a 11.2% annualized rate of...
Investors eyeing a purchase of Cubist Pharmaceuticals Inc. (NASD: CBST) shares, but tentative about paying the going market price of $53.83/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the February 2014 put at the $47 strike, which has a bid at the time of this writing of $3.30. Collecting that bid as the premium represents a 7% return against the $47 commitment, or a 11.2% annualized rate of...
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