Commit To Purchase Arbitron At $40, Earn 7.6% Annualized

Investors considering a purchase of Arbitron Inc. (NYSE: ARB) stock, but tentative about paying the going market price of $46.17/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the August put at the $40 strike, which has a bid at the time of this writing of 10 cents. Collecting that bid as the premium represents a 0.2% return against the $40 commitment, or a 7.6% annualized rate of return (at St...