Commit To Purchase Middleby Corp. At $175, Earn 8% Annualized

Investors considering a purchase of Middleby Corp. (NASD: MIDD) shares, but cautious about paying the going market price of $187.44/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the March 2014 put at the $175 strike, which has a bid at the time of this writing of $8.80. Collecting that bid as the premium represents a 5% return against the $175 commitment, or a 8% annualized rate of return (at ...