Shareholders of Lexmark International, Inc. (NYSE: LXK) looking to boost their income beyond the stock's 3.7% annualized dividend yield can sell the January 2015 covered call at the $40 strike and collect the premium based on the $3.20 bid, which annualizes to an additional 6.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9.9% annualized rate in the scenario where the stock is not called away. Any upside above $40 would be...
Shareholders of Lexmark International, Inc. (NYSE: LXK) looking to boost their income beyond the stock's 3.7% annualized dividend yield can sell the January 2015 covered call at the $40 strike and collect the premium based on the $3.20 bid, which annualizes to an additional 6.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9.9% annualized rate in the scenario where the stock is not called away. Any upside above $40 would be...
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