Shareholders of GUESS?, Inc. (NYSE: GES) looking to boost their income beyond the stock's 2.5% annualized dividend yield can sell the January 2015 covered call at the $40 strike and collect the premium based on the $2.45 bid, which annualizes to an additional 4.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.4% annualized rate in the scenario where the stock is not called away. Any upside above $40 would be lost if the st...
Shareholders of GUESS?, Inc. (NYSE: GES) looking to boost their income beyond the stock's 2.5% annualized dividend yield can sell the January 2015 covered call at the $40 strike and collect the premium based on the $2.45 bid, which annualizes to an additional 4.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.4% annualized rate in the scenario where the stock is not called away. Any upside above $40 would be lost if the st...
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