Commit To Buy Mattress Firm Holding Corp At $40, Earn 11.1% Annualized Using Options

Investors considering a purchase of Mattress Firm Holding Corp (MFRM) shares, but cautious about paying the going market price of $45.99/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the April 2016 put at the $40 strike, which has a bid at the time of this writing of $1.90..