Commit To Purchase Otonomy At $25, Earn 15.6% Annualized Using Options
July 28, 2015 at 11:41 AM EDT
Investors eyeing a purchase of Otonomy Inc (OTIC) shares, but cautious about paying the going market price of $27.20/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the March 2016 put at the $25 strike, which has a bid at the time of this writing of $2.50..