Commit To Buy Diamond Foods At $17, Earn 10%

Investors eyeing a purchase of Diamond Foods Inc (NASD: DMND) shares, but tentative about paying the going market price of $24.03/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 $17 strike, which has a bid at the time of this writing of $1.70. Collecting that bid as the premium represents a 10% return against the $17 commitment, or a 7.7% annualized rate of return (at...