Shareholders of Pegasystems Inc. (NASD: PEGA) looking to boost their income beyond the stock's 0.4% annualized dividend yield can sell the December covered call at the $35 strike and collect the premium based on the $2.40 bid, which annualizes to an additional 14.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 14.9% annualized rate in the scenario where the stock is not called away. Any upside above $35 would be lost if the...
Shareholders of Pegasystems Inc. (NASD: PEGA) looking to boost their income beyond the stock's 0.4% annualized dividend yield can sell the December covered call at the $35 strike and collect the premium based on the $2.40 bid, which annualizes to an additional 14.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 14.9% annualized rate in the scenario where the stock is not called away. Any upside above $35 would be lost if the...
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