Shareholders of Lithia Motors, Inc. (NYSE: LAD) looking to boost their income beyond the stock's 0.9% annualized dividend yield can sell the December covered call at the $60 strike and collect the premium based on the $3.60 bid, which annualizes to an additional 12.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 13.7% annualized rate in the scenario where the stock is not called away. Any upside above $60 would be lost if t...
Shareholders of Lithia Motors, Inc. (NYSE: LAD) looking to boost their income beyond the stock's 0.9% annualized dividend yield can sell the December covered call at the $60 strike and collect the premium based on the $3.60 bid, which annualizes to an additional 12.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 13.7% annualized rate in the scenario where the stock is not called away. Any upside above $60 would be lost if t...
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