Commit To Buy Rackspace Hosting At $33, Earn 7.1% Using Options
May 28, 2015 at 11:46 AM EDT
Investors eyeing a purchase of Rackspace Hosting Inc (RAX) stock, but tentative about paying the going market price of $42.28/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the January 2017 put at the $33 strike, which has a bid at the time of this writing of $2.35..