Shareholders of Alon USA Energy Inc (NYSE: ALJ) looking to boost their income beyond the stock's 1.3% annualized dividend yield can sell the September covered call at the $19.84 strike and collect the premium based on the $1.00 bid, which annualizes to an additional 17.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 19.1% annualized rate in the scenario where the stock is not called away. Any upside above $19.84 would be lo...
Shareholders of Alon USA Energy Inc (NYSE: ALJ) looking to boost their income beyond the stock's 1.3% annualized dividend yield can sell the September covered call at the $19.84 strike and collect the premium based on the $1.00 bid, which annualizes to an additional 17.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 19.1% annualized rate in the scenario where the stock is not called away. Any upside above $19.84 would be lo...
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