Commit To Purchase Arch Capital Group At $45, Earn 1.7% Annualized

Investors considering a purchase of Arch Capital Group Ltd (NASD: ACGL) shares, but tentative about paying the going market price of $53.86/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 $45 strike, which has a bid at the time of this writing of 45 cents. Collecting that bid as the premium represents a 1% return against the $45 commitment, or a 1.7% annualized rate of ...