Commit To Purchase Tempur Sealy International At $30, Earn 9.5%

September 27, 2013   |   September 2013 Bond Updates
Investors eyeing a purchase of Tempur Sealy International, Inc. (NYSE: TPX) stock, but tentative about paying the going market price of $44.06/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the January 2015 put at the $30 strike, which has a bid at the time of this writing of $2.85. Collecting that bid as the premium represents a 9.5% return against the $30 commitment, or a 7.3% annualized rate of return (at Stock Options Channel we call this the YieldBoost).

View more at: http://www.forbes.com/sites/stockoptionschannel/2013/09/27/commit-to-purchase-tempur-sealy-international-at-30-earn-9-5/
 
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