Shareholders of Mueller Water Products Inc (NYSE: MWA) looking to boost their income beyond the stock's 1.1% annualized dividend yield can sell the November covered call at the $7.50 strike and collect the premium based on the 40 cents bid, which annualizes to an additional 14.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.3% annualized rate in the scenario where the stock is not called away. Any upside above $7.50 woul...
Shareholders of Mueller Water Products Inc (NYSE: MWA) looking to boost their income beyond the stock's 1.1% annualized dividend yield can sell the November covered call at the $7.50 strike and collect the premium based on the 40 cents bid, which annualizes to an additional 14.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.3% annualized rate in the scenario where the stock is not called away. Any upside above $7.50 woul...
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