Shareholders of Best Buy Inc (NYSE: BBY) looking to boost their income beyond the stock's 2.6% annualized dividend yield can sell the September covered call at the $27 strike and collect the premium based on the $2.08 bid, which annualizes to an additional 24% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 26.6% annualized rate in the scenario where the stock is not called away. Any upside above $27 would be lost if the stock...
Shareholders of Best Buy Inc (NYSE: BBY) looking to boost their income beyond the stock's 2.6% annualized dividend yield can sell the September covered call at the $27 strike and collect the premium based on the $2.08 bid, which annualizes to an additional 24% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 26.6% annualized rate in the scenario where the stock is not called away. Any upside above $27 would be lost if the stock...
Share this Article
Recommended