Shareholders of Choice Hotels International, Inc. (NYSE: CHH) looking to boost their income beyond the stock's 1.8% annualized dividend yield can sell the March 2014 covered call at the $45 strike and collect the premium based on the 55 cents bid, which annualizes to an additional 2.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 4% annualized rate in the scenario where the stock is not called away. Any upside above $45 wou...
Shareholders of Choice Hotels International, Inc. (NYSE: CHH) looking to boost their income beyond the stock's 1.8% annualized dividend yield can sell the March 2014 covered call at the $45 strike and collect the premium based on the 55 cents bid, which annualizes to an additional 2.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 4% annualized rate in the scenario where the stock is not called away. Any upside above $45 wou...
Share this Article
Recommended