Investors considering a purchase of Ambarella, Inc. (NASD: AMBA) stock, but cautious about paying the going market price of $19.14/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the May 2014 put at the $15 strike, which has a bid at the time of this writing of $1.30. Collecting that bid as the premium represents a 8.7% return against the $15 commitment, or a 13.6% annualized rate of return (at ...
Investors considering a purchase of Ambarella, Inc. (NASD: AMBA) stock, but cautious about paying the going market price of $19.14/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the May 2014 put at the $15 strike, which has a bid at the time of this writing of $1.30. Collecting that bid as the premium represents a 8.7% return against the $15 commitment, or a 13.6% annualized rate of return (at ...
Share this Article
Recommended