Commit To Buy Ventas At $55, Earn 3.1% Annualized Using Options

Investors considering a purchase of Ventas, Inc. (NYSE: VTR) stock, but cautious about paying the going market price of $61.26/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the February 2015 put at the $55 strike, which has a bid at the time of this writing of 70 cents. Collecting that bid as the premium represents a 1.3% return against the $55 commitment, or a 3.1% annualized rate of return (...