Shareholders of News Corp (NASD: NWSA) looking to boost their income beyond the stock's 0.5% annualized dividend yield can sell the January 2015 covered call at the $40 strike and collect the premium based on the $2.10 bid, which annualizes to an additional 3.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 4.4% annualized rate in the scenario where the stock is not called away. Any upside above $40 would be lost if the stoc...
Shareholders of News Corp (NASD: NWSA) looking to boost their income beyond the stock's 0.5% annualized dividend yield can sell the January 2015 covered call at the $40 strike and collect the premium based on the $2.10 bid, which annualizes to an additional 3.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 4.4% annualized rate in the scenario where the stock is not called away. Any upside above $40 would be lost if the stoc...
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