• Commit To Buy Cowen Group At $2.50, Earn 4.7% Annualized

    Source: Forbes - Markets / 15 Aug 2013 13:39:39   Eastern Standard Time

    Investors eyeing a purchase of Cowen Group Inc (NASD: COWN) shares, but tentative about paying the going market price of $3.49/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the January 2014 put at the $2.50 strike, which has a bid at the time of this writing of 5 cents. Collecting that bid as the premium represents a 2% return against the $2.50 commitment, or a 4.7% annualized rate of return (at Stock Options Channel we call this the YieldBoost). http://www.forbes.com/sites/stockoptionschannel/2013/08/15/commit-to-buy-cowen-group-at-2-50-earn-4-7-annualized/