Shareholders of Sherwin-Williams Co. (NYSE: SHW) looking to boost their income beyond the stock's 1.1% annualized dividend yield can sell the January 2015 covered call at the $210 strike and collect the premium based on the $12.30 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 5.3% annualized rate in the scenario where the stock is not called away. Any upside above $210 would be los...
Shareholders of Sherwin-Williams Co. (NYSE: SHW) looking to boost their income beyond the stock's 1.1% annualized dividend yield can sell the January 2015 covered call at the $210 strike and collect the premium based on the $12.30 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 5.3% annualized rate in the scenario where the stock is not called away. Any upside above $210 would be los...
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