Investors eyeing a purchase of McDermott International (NYSE: MDR) stock, but tentative about paying the going market price of $7.46/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 $5 strike, which has a bid at the time of this writing of 35 cents. Collecting that bid as the premium represents a 7% return against the $5 commitment, or a 5.4% annualized rate of return ...
Investors eyeing a purchase of McDermott International (NYSE: MDR) stock, but tentative about paying the going market price of $7.46/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 $5 strike, which has a bid at the time of this writing of 35 cents. Collecting that bid as the premium represents a 7% return against the $5 commitment, or a 5.4% annualized rate of return ...
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