Shareholders of Webster Financial Corp (NYSE: WBS) looking to boost their income beyond the stock's 2.1% annualized dividend yield can sell the January 2014 covered call at the $30 strike and collect the premium based on the 70 cents bid, which annualizes to an additional 5.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.6% annualized rate in the scenario where the stock is not called away. Any upside above $30 would be l...
Shareholders of Webster Financial Corp (NYSE: WBS) looking to boost their income beyond the stock's 2.1% annualized dividend yield can sell the January 2014 covered call at the $30 strike and collect the premium based on the 70 cents bid, which annualizes to an additional 5.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.6% annualized rate in the scenario where the stock is not called away. Any upside above $30 would be l...
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