Investors eyeing a purchase of W. R. Berkley Corp. (NYSE: WRB) shares, but tentative about paying the going market price of $42.00/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 $40 strike, which has a bid at the time of this writing of 35 cents. Collecting that bid as the premium represents a 0.9% return against the $40 commitment, or a 5.6% annualized rate of return (at...
Investors eyeing a purchase of W. R. Berkley Corp. (NYSE: WRB) shares, but tentative about paying the going market price of $42.00/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 $40 strike, which has a bid at the time of this writing of 35 cents. Collecting that bid as the premium represents a 0.9% return against the $40 commitment, or a 5.6% annualized rate of return (at...
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