Commit To Purchase PHH Corp At $17.50, Earn 7.7% Using Options

Investors eyeing a purchase of PHH Corp (NYSE: PHH) stock, but cautious about paying the going market price of $23.88/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the January 2017 put at the $17.50 strike, which has a bid at the time of this writing of $1.35. Collecting that bid as the premium represents a 7.7% return against the $17.50 commitment, or a 3.5% annualized rate of return (at Stoc...