Commit To Buy Range Resources At $50, Earn 7.8% Using Options

Investors eyeing a purchase of Range Resources Corp (NYSE: RRC) stock, but tentative about paying the going market price of $74.17/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 $50 strike, which has a bid at the time of this writing of $3.90. Collecting that bid as the premium represents a 7.8% return against the $50 commitment, or a 3.6% annualized rate of return (at Stock Options Channel we call this the YieldBoost).

http://www.forbes.com/sites/stockoptionschannel/2013/11/18/commit-to-buy-range-resources-at-50-earn-7-8-using-options/