Commit To Purchase WestAmerica Bancorporation At $50, Earn 11.1% Annualized

Investors considering a purchase of WestAmerica Bancorporation (NASD: WABC) shares, but tentative about paying the going market price of $49.87/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the January 2014 put at the $50 strike, which has a bid at the time of this writing of $2.25. Collecting that bid as the premium represents a 4.5% return against the $50 commitment, or a 11.1% annualized ra...