Commit To Purchase Big Lots At $25, Earn 6.6%

Investors considering a purchase of Big Lots, Inc. (NYSE: BIG) shares, but tentative about paying the going market price of $34.03/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 $25 strike, which has a bid at the time of this writing of $1.65. Collecting that bid as the premium represents a 6.6% return against the $25 commitment, or a 4.3% annualized rate of return (...