Shareholders of State Street Corp. (NYSE: STT) looking to boost their income beyond the stock's 1.6% annualized dividend yield can sell the January 2015 covered call at the $75 strike and collect the premium based on the $5.50 bid, which annualizes to an additional 5.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.7% annualized rate in the scenario where the stock is not called away. Any upside above $75 would be lost if ...
Shareholders of State Street Corp. (NYSE: STT) looking to boost their income beyond the stock's 1.6% annualized dividend yield can sell the January 2015 covered call at the $75 strike and collect the premium based on the $5.50 bid, which annualizes to an additional 5.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.7% annualized rate in the scenario where the stock is not called away. Any upside above $75 would be lost if ...
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