Shareholders of Intersil Corp. (NASD: ISIL) looking to boost their income beyond the stock's 6% annualized dividend yield can sell the January 2014 covered call at the $9 strike and collect the premium based on the 50 cents 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 16.2% annualized rate in the scenario where the stock is not called away. Any upside above $9 would be lost if th...
Shareholders of Intersil Corp. (NASD: ISIL) looking to boost their income beyond the stock's 6% annualized dividend yield can sell the January 2014 covered call at the $9 strike and collect the premium based on the 50 cents 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 16.2% annualized rate in the scenario where the stock is not called away. Any upside above $9 would be lost if th...
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