Commit To Purchase Centene Corp At $42.50, Earn 9.4%

Investors eyeing a purchase of Centene Corp (NYSE: CNC) shares, but cautious about paying the going market price of $54.38/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 $42.50 strike, which has a bid at the time of this writing of $4.00. Collecting that bid as the premium represents a 9.4% return against the $42.50 commitment, or a 6.2% annualized rate of return (at...