Commit To Buy BioMarin Pharmaceutical At $42, Earn 6.3%

Investors eyeing a purchase of BioMarin Pharmaceutical Inc. (NASD: BMRN) stock, but tentative about paying the going market price of $59.02/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 $42 strike, which has a bid at the time of this writing of $2.65. Collecting that bid as the premium represents a 6.3% return against the $42 commitment, or a 4.1% annualized rate of...