Shareholders of Tesoro Corporation (NYSE: TSO) looking to boost their income beyond the stock's 1.3% annualized dividend yield can sell the January 2015 covered call at the $90 strike and collect the premium based on the $4.50 bid, which annualizes to an additional 4.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 5.6% annualized rate in the scenario where the stock is not called away. Any upside above $90 would be lost if ...
Shareholders of Tesoro Corporation (NYSE: TSO) looking to boost their income beyond the stock's 1.3% annualized dividend yield can sell the January 2015 covered call at the $90 strike and collect the premium based on the $4.50 bid, which annualizes to an additional 4.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 5.6% annualized rate in the scenario where the stock is not called away. Any upside above $90 would be lost if ...
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