Shareholders of Cypress Semiconductor Corp. (NASD: CY) looking to boost their income beyond the stock's 3.9% annualized dividend yield can sell the January 2015 covered call at the $15 strike and collect the premium based on the 75 cents bid, which annualizes to an additional 4.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8.2% annualized rate in the scenario where the stock is not called away. Any upside above $15 would ...
Shareholders of Cypress Semiconductor Corp. (NASD: CY) looking to boost their income beyond the stock's 3.9% annualized dividend yield can sell the January 2015 covered call at the $15 strike and collect the premium based on the 75 cents bid, which annualizes to an additional 4.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8.2% annualized rate in the scenario where the stock is not called away. Any upside above $15 would ...
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