Shareholders of Cisco Systems, Inc. (NASD: CSCO) looking to boost their income beyond the stock's 2.7% annualized dividend yield can sell the January 2015 covered call at the $30 strike and collect the premium based on the $1.18 bid, which annualizes to an additional 3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 5.8% annualized rate in the scenario where the stock is not called away. Any upside above $30 would be lost if ...
Shareholders of Cisco Systems, Inc. (NASD: CSCO) looking to boost their income beyond the stock's 2.7% annualized dividend yield can sell the January 2015 covered call at the $30 strike and collect the premium based on the $1.18 bid, which annualizes to an additional 3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 5.8% annualized rate in the scenario where the stock is not called away. Any upside above $30 would be lost if ...
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