Commit To Purchase Matson At $25, Earn 6.4% Annualized

Investors considering a purchase of Matson Inc (NYSE: MATX) stock, but tentative about paying the going market price of $28.35/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 $25 strike, which has a bid at the time of this writing of $1.00. Collecting that bid as the premium represents a 4% return against the $25 commitment, or a 6.4% annualized rate of return (at Stock...