Shareholders of Energy XXI Bermuda Ltd (NASD: EXXI) looking to boost their income beyond the stock's 1.9% annualized dividend yield can sell the January 2015 covered call at the $32 strike and collect the premium based on the $2.35 bid, which annualizes to an additional 5.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.6% annualized rate in the scenario where the stock is not called away. Any upside above $32 would be los...
Shareholders of Energy XXI Bermuda Ltd (NASD: EXXI) looking to boost their income beyond the stock's 1.9% annualized dividend yield can sell the January 2015 covered call at the $32 strike and collect the premium based on the $2.35 bid, which annualizes to an additional 5.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.6% annualized rate in the scenario where the stock is not called away. Any upside above $32 would be los...
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