Investors considering a purchase of Old Dominion Freight Line, Inc. (NASD: ODFL) stock, but tentative about paying the going market price of $45.05/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the January 2014 put at the $40 strike, which has a bid at the time of this writing of $1.20. Collecting that bid as the premium represents a 3% return against the $40 commitment, or a 6.6% annualized r...
Investors considering a purchase of Old Dominion Freight Line, Inc. (NASD: ODFL) stock, but tentative about paying the going market price of $45.05/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the January 2014 put at the $40 strike, which has a bid at the time of this writing of $1.20. Collecting that bid as the premium represents a 3% return against the $40 commitment, or a 6.6% annualized r...
Share this Article
Comment on this Article
Recommended
Please to comment