Commit To Purchase Corrections Corporation of America At $23, Earn 7.8%

Investors eyeing a purchase of Corrections Corporation of America (NYSE: CXW) stock, but cautious about paying the going market price of $32.02/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 $23 strike, which has a bid at the time of this writing of $1.80. Collecting that bid as the premium represents a 7.8% return against the $23 commitment, or a 5.1% annualized rat...