Shareholders of Nasdaq OMX Group (NASD: NDAQ) looking to boost their income beyond the stock's 1.6% annualized dividend yield can sell the January 2014 covered call at the $35 strike and collect the premium based on the $1.95 bid, which annualizes to an additional 10.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 11.6% annualized rate in the scenario where the stock is not called away. Any upside above $35 would be lost if...
Shareholders of Nasdaq OMX Group (NASD: NDAQ) looking to boost their income beyond the stock's 1.6% annualized dividend yield can sell the January 2014 covered call at the $35 strike and collect the premium based on the $1.95 bid, which annualizes to an additional 10.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 11.6% annualized rate in the scenario where the stock is not called away. Any upside above $35 would be lost if...
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