Commit To Purchase Dynex Capital At $7.50, Earn 20.6% Annualized

Investors eyeing a purchase of Dynex Capital, Inc. (NYSE: DX) shares, but cautious about paying the going market price of $7.92/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the October put at the $7.50 strike, which has a bid at the time of this writing of 25 cents. Collecting that bid as the premium represents a 3.3% return against the $7.50 commitment, or a 20.6% annualized rate of return (...