Shareholders of Joy Global Inc (NYSE: JOY) looking to boost their income beyond the stock's 1.2% annualized dividend yield can sell the January 2015 covered call at the $77.50 strike and collect the premium based on the $4.95 bid, which annualizes to an additional 5.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.2% annualized rate in the scenario where the stock is not called away. Any upside above $77.50 would be lost i...
Shareholders of Joy Global Inc (NYSE: JOY) looking to boost their income beyond the stock's 1.2% annualized dividend yield can sell the January 2015 covered call at the $77.50 strike and collect the premium based on the $4.95 bid, which annualizes to an additional 5.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.2% annualized rate in the scenario where the stock is not called away. Any upside above $77.50 would be lost i...
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