Forbes -
5 Jul 2013 18:07

Shareholders of HCA Holdings Inc (NYSE: HCA) looking to boost their income beyond the stock's 5.6% annualized dividend yield can sell the January 2015 covered call at the $45 strike and collect the premium based on the $2.45 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 10.1% annualized rate in the scenario where the stock is not called away. Any upside above $45 would be lost if t...
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