Commit To Buy American Railcar Industries At $35, Earn 13.1% Annualized Using Options

Investors considering a purchase of American Railcar Industries Inc (ARII) shares, but tentative about paying the going market price of $42.12/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the March 2017 put at the $35 strike, which has a bid at the time of this writing of $2.90..