Commit To Purchase Pacific Ethanol At $7.50, Earn 17.3% Using Options
October 07, 2014 at 11:31 AM EDT
Investors considering a purchase of Pacific Ethanol Inc (PEIX) shares, but tentative about paying the going market price of $11.87/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 $7.50 strike, which has a bid at the time of this writing of $1.30..