Shareholders of Phillips 66 (NYSE: PSX) looking to boost their income beyond the stock's 1.9% annualized dividend yield can sell the January 2015 covered call at the $85 strike and collect the premium based on the $4.50 bid, which annualizes to an additional 4.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6% annualized rate in the scenario where the stock is not called away. Any upside above $85 would be lost if the stock...
Shareholders of Phillips 66 (NYSE: PSX) looking to boost their income beyond the stock's 1.9% annualized dividend yield can sell the January 2015 covered call at the $85 strike and collect the premium based on the $4.50 bid, which annualizes to an additional 4.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6% annualized rate in the scenario where the stock is not called away. Any upside above $85 would be lost if the stock...
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