Commit To Purchase Beazer Homes USA At $10, Earn 7%

Investors considering a purchase of Beazer Homes USA (NYSE: BZH) stock, but cautious about paying the going market price of $18.13/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 $10 strike, which has a bid at the time of this writing of 70 cents. Collecting that bid as the premium represents a 7% return against the $10 commitment, or a 5.4% annualized rate of return ...