Commit To Buy Best Buy At $23, Earn 5% Using Options

Investors considering a purchase of Best Buy Inc (NYSE: BBY) stock, but cautious about paying the going market price of $34.93/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 $23 strike, which has a bid at the time of this writing of $1.14. Collecting that bid as the premium represents a 5% return against the $23 commitment, or a 4.2% annualized rate of return (at Sto...