Shareholders of Tyson Foods, Inc. (NYSE: TSN) looking to boost their income beyond the stock's 0.8% annualized dividend yield can sell the January 2015 covered call at the $30 strike and collect the premium based on the $1.70 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 5% annualized rate in the scenario where the stock is not called away. Any upside above $30 would be lost if the...
Shareholders of Tyson Foods, Inc. (NYSE: TSN) looking to boost their income beyond the stock's 0.8% annualized dividend yield can sell the January 2015 covered call at the $30 strike and collect the premium based on the $1.70 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 5% annualized rate in the scenario where the stock is not called away. Any upside above $30 would be lost if the...
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