Investors eyeing a purchase of Rackspace Hosting (NYSE: RAX) stock, but cautious about paying the going market price of $52.27/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 $35 strike, which has a bid at the time of this writing of $2.35. Collecting that bid as the premium represents a 6.7% return against the $35 commitment, or a 5.2% annualized rate of return (at S...
Investors eyeing a purchase of Rackspace Hosting (NYSE: RAX) stock, but cautious about paying the going market price of $52.27/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 $35 strike, which has a bid at the time of this writing of $2.35. Collecting that bid as the premium represents a 6.7% return against the $35 commitment, or a 5.2% annualized rate of return (at S...
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