Shareholders of Movado Group, Inc. (NYSE: MOV) looking to boost their income beyond the stock's 0.6% annualized dividend yield can sell the December covered call at the $40 strike and collect the premium based on the $1.90 bid, which annualizes to an additional 10.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.8% annualized rate in the scenario where the stock is not called away. Any upside above $40 would be lost if th...
Shareholders of Movado Group, Inc. (NYSE: MOV) looking to boost their income beyond the stock's 0.6% annualized dividend yield can sell the December covered call at the $40 strike and collect the premium based on the $1.90 bid, which annualizes to an additional 10.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.8% annualized rate in the scenario where the stock is not called away. Any upside above $40 would be lost if th...
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