Shareholders of Bank of America Corp. (NYSE: BAC) looking to boost their income beyond the stock's 0.3% annualized dividend yield can sell the January 2015 covered call at the $17 strike and collect the premium based on the $1.00 bid, which annualizes to an additional 4.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 4.7% annualized rate in the scenario where the stock is not called away. Any upside above $17 would be lost ...
Shareholders of Bank of America Corp. (NYSE: BAC) looking to boost their income beyond the stock's 0.3% annualized dividend yield can sell the January 2015 covered call at the $17 strike and collect the premium based on the $1.00 bid, which annualizes to an additional 4.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 4.7% annualized rate in the scenario where the stock is not called away. Any upside above $17 would be lost ...
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