Shareholders of Masco Corp. (NYSE: MAS) looking to boost their income beyond the stock's 1.4% annualized dividend yield can sell the October covered call at the $24 strike and collect the premium based on the $1.25 bid, which annualizes to an additional 13.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 14.9% annualized rate in the scenario where the stock is not called away. Any upside above $24 would be lost if the stock ...
Shareholders of Masco Corp. (NYSE: MAS) looking to boost their income beyond the stock's 1.4% annualized dividend yield can sell the October covered call at the $24 strike and collect the premium based on the $1.25 bid, which annualizes to an additional 13.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 14.9% annualized rate in the scenario where the stock is not called away. Any upside above $24 would be lost if the stock ...
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