Shareholders of Peabody Energy Corp (NYSE: BTU) looking to boost their income beyond the stock's 1.6% annualized dividend yield can sell the January 2015 covered call at the $27 strike and collect the premium based on the $2.39 bid, which annualizes to an additional 6.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8.4% annualized rate in the scenario where the stock is not called away. Any upside above $27 would be lost if...
Shareholders of Peabody Energy Corp (NYSE: BTU) looking to boost their income beyond the stock's 1.6% annualized dividend yield can sell the January 2015 covered call at the $27 strike and collect the premium based on the $2.39 bid, which annualizes to an additional 6.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8.4% annualized rate in the scenario where the stock is not called away. Any upside above $27 would be lost if...
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