Commit To Purchase Alleghany Corp. At $380, Earn 6.3% Annualized

Investors considering a purchase of Alleghany Corp. (NYSE: Y) stock, but cautious about paying the going market price of $396.32/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the April 2014 put at the $380 strike, which has a bid at the time of this writing of $15.70. Collecting that bid as the premium represents a 4.1% return against the $380 commitment, or a 6.3% annualized rate of return (a...