Commit To Buy Headwaters At $16, Earn 13.3% Annualized Using Options

Investors eyeing a purchase of Headwaters Inc (HW) stock, but tentative about paying the going market price of $17.41/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the November put at the $16 strike, which has a bid at the time of this writing of 90 cents..