Shareholders of Patterson-UTI Energy Inc. (NASD: PTEN) looking to boost their income beyond the stock's 1.6% annualized dividend yield can sell the February 2015 covered call at the $26 strike and collect the premium based on the $2.45 bid, which annualizes to an additional 28.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 30.2% annualized rate in the scenario where the stock is not called away. Any upside above $26 would ...
Shareholders of Patterson-UTI Energy Inc. (NASD: PTEN) looking to boost their income beyond the stock's 1.6% annualized dividend yield can sell the February 2015 covered call at the $26 strike and collect the premium based on the $2.45 bid, which annualizes to an additional 28.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 30.2% annualized rate in the scenario where the stock is not called away. Any upside above $26 would ...
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