Commit To Buy Blue Nile At $25, Earn 19.4% Annualized Using Options

Investors eyeing a purchase of Blue Nile Inc (NILE) shares, but cautious about paying the going market price of $27.56/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the May put at the $25 strike, which has a bid at the time of this writing of $1.25..