Commit To Purchase Medidata Solutions At $80, Earn 13.6% Annualized

Investors eyeing a purchase of Medidata Solutions (NASD: MDSO) shares, but tentative about paying the going market price of $97.22/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the April 2014 put at the $80 strike, which has a bid at the time of this writing of $5.90. Collecting that bid as the premium represents a 7.4% return against the $80 commitment, or a 13.6% annualized rate of return (a...