Shareholders of Cliffs Natural Resources, Inc. (NYSE: CLF) looking to boost their income beyond the stock's 2.8% annualized dividend yield can sell the January 2014 covered call at the $29 strike and collect the premium based on the $1.35 bid, which annualizes to an additional 9.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 12.4% annualized rate in the scenario where the stock is not called away. Any upside above $29 woul...
Shareholders of Cliffs Natural Resources, Inc. (NYSE: CLF) looking to boost their income beyond the stock's 2.8% annualized dividend yield can sell the January 2014 covered call at the $29 strike and collect the premium based on the $1.35 bid, which annualizes to an additional 9.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 12.4% annualized rate in the scenario where the stock is not called away. Any upside above $29 woul...
Share this Article
Recommended