Commit To Purchase Tempur Sealy International At $30, Earn 9.5%

Investors eyeing a purchase of Tempur Sealy International, Inc. (NYSE: TPX) stock, but tentative about paying the going market price of $44.06/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the January 2015 put at the $30 strike, which has a bid at the time of this writing of $2.85. Collecting that bid as the premium represents a 9.5% return against the $30 commitment, or a 7.3% annualized rate...