Shareholders of Ryder System, Inc. (NYSE: R) looking to boost their income beyond the stock's 2% annualized dividend yield can sell the November covered call at the $62.50 strike and collect the premium based on the $4.50 bid, which annualizes to an additional 17.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 19.6% annualized rate in the scenario where the stock is not called away. Any upside above $62.50 would be lost if ...
Shareholders of Ryder System, Inc. (NYSE: R) looking to boost their income beyond the stock's 2% annualized dividend yield can sell the November covered call at the $62.50 strike and collect the premium based on the $4.50 bid, which annualizes to an additional 17.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 19.6% annualized rate in the scenario where the stock is not called away. Any upside above $62.50 would be lost if ...
Share this Article
Recommended