Commit To Buy Office Depot At $3, Earn 13.3%

Investors considering a purchase of Office Depot (NYSE: ODP) stock, but tentative about paying the going market price of $4.90/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the January 2016 put at the $3 strike, which has a bid at the time of this writing of 40 cents. Collecting that bid as the premium represents a 13.3% return against the $3 commitment, or a 5.8% annualized rate of return (at...