Commit To Buy Platinum Underwriters Holdings At $50, Earn 1.8% Annualized

Investors considering a purchase of Platinum Underwriters Holdings, Ltd. (NYSE: PTP) shares, but cautious about paying the going market price of $58.47/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 $50 strike, which has a bid at the time of this writing of 60 cents. Collecting that bid as the premium represents a 1.2% return against the $50 commitment, or a 1.8% annua...