Shareholders of Interdigital Inc (NASD: IDCC) looking to boost their income beyond the stock's 0.9% annualized dividend yield can sell the January 2015 covered call at the $58.50 strike and collect the premium based on the $4.50 bid, which annualizes to an additional 6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.9% annualized rate in the scenario where the stock is not called away. Any upside above $58.50 would be lost ...
Shareholders of Interdigital Inc (NASD: IDCC) looking to boost their income beyond the stock's 0.9% annualized dividend yield can sell the January 2015 covered call at the $58.50 strike and collect the premium based on the $4.50 bid, which annualizes to an additional 6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.9% annualized rate in the scenario where the stock is not called away. Any upside above $58.50 would be lost ...
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