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الأربعاء، 23 سبتمبر 2015

Commit To Buy Becton, Dickinson and Co. At $120, Earn 3.4% Annualized Using Options

Investors eyeing a purchase of Becton, Dickinson and Co. (NYSE: BDX) stock, but tentative about paying the going market price of $139.06/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the March 2016 put at the $120 strike, which has a bid at the time of this writing of $2.00. Collecting that bid as the premium represents a 1.7% return against the $120 commitment, or a 3.4% annualized rate of return (at Stock Options Channel we call this the YieldBoost).

Source Forbes - Markets http://ift.tt/1NMo0jt

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