Shareholders of Marathon Petroleum Corp. (NYSE: MPC) looking to boost their income beyond the stock's 1.7% annualized dividend yield can sell the January 2015 covered call at the $115 strike and collect the premium based on the $5.60 bid, which annualizes to an additional 4.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 5.8% annualized rate in the scenario where the stock is not called away. Any upside above $115 would be ...
Shareholders of Marathon Petroleum Corp. (NYSE: MPC) looking to boost their income beyond the stock's 1.7% annualized dividend yield can sell the January 2015 covered call at the $115 strike and collect the premium based on the $5.60 bid, which annualizes to an additional 4.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 5.8% annualized rate in the scenario where the stock is not called away. Any upside above $115 would be ...
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