Shareholders of Eagle Materials Inc (NYSE: EXP) looking to boost their income beyond the stock's 0.6% annualized dividend yield can sell the January 2014 covered call at the $82.50 strike and collect the premium based on the $3.70 bid, which annualizes to an additional 8.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9.2% annualized rate in the scenario where the stock is not called away. Any upside above $82.50 would be l...
Shareholders of Eagle Materials Inc (NYSE: EXP) looking to boost their income beyond the stock's 0.6% annualized dividend yield can sell the January 2014 covered call at the $82.50 strike and collect the premium based on the $3.70 bid, which annualizes to an additional 8.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9.2% annualized rate in the scenario where the stock is not called away. Any upside above $82.50 would be l...
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