Shareholders of MasterCard Inc (NYSE: MA) looking to boost their income beyond the stock's 0.4% annualized dividend yield can sell the January 2015 covered call at the $670 strike and collect the premium based on the $41.15 bid, which annualizes to an additional 4.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 4.9% annualized rate in the scenario where the stock is not called away. Any upside above $670 would be lost if th...
Shareholders of MasterCard Inc (NYSE: MA) looking to boost their income beyond the stock's 0.4% annualized dividend yield can sell the January 2015 covered call at the $670 strike and collect the premium based on the $41.15 bid, which annualizes to an additional 4.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 4.9% annualized rate in the scenario where the stock is not called away. Any upside above $670 would be lost if th...
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