Shareholders of Expedia Inc (NASD: EXPE) looking to boost their income beyond the stock's 0.9% annualized dividend yield can sell the January 2015 covered call at the $79.48 strike and collect the premium based on the $4.60 bid, which annualizes to an additional 4.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 5.7% annualized rate in the scenario where the stock is not called away. Any upside above $79.48 would be lost if ...
Shareholders of Expedia Inc (NASD: EXPE) looking to boost their income beyond the stock's 0.9% annualized dividend yield can sell the January 2015 covered call at the $79.48 strike and collect the premium based on the $4.60 bid, which annualizes to an additional 4.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 5.7% annualized rate in the scenario where the stock is not called away. Any upside above $79.48 would be lost if ...
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