Commit To Purchase Prospect Capital Corporation At $10, Earn 8.2% Annualized

Investors considering a purchase of Prospect Capital Corporation (NASD: PSEC) shares, but tentative about paying the going market price of $10.89/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 $10 strike, which has a bid at the time of this writing of 45 cents. Collecting that bid as the premium represents a 4.5% return against the $10 commitment, or a 8.2% annualiz...