Shareholders of CONSOL Energy Inc (NYSE: CNX) looking to boost their income beyond the stock's 1.4% annualized dividend yield can sell the January 2015 covered call at the $47 strike and collect the premium based on the $2.67 bid, which annualizes to an additional 4.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6% annualized rate in the scenario where the stock is not called away. Any upside above $47 would be lost if the...
Shareholders of CONSOL Energy Inc (NYSE: CNX) looking to boost their income beyond the stock's 1.4% annualized dividend yield can sell the January 2015 covered call at the $47 strike and collect the premium based on the $2.67 bid, which annualizes to an additional 4.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6% annualized rate in the scenario where the stock is not called away. Any upside above $47 would be lost if the...
Share this Article
Recommended