#FLAKZ #Markets Strategy To YieldBoost Matson From 2.4% To 12.2% Using Options ift.tt/eA8V8J Shareholders of Matson Inc (NYSE: MATX) looking to boost their income beyond the stocks 2.4% annualized dividend yield can sell the December covered call at the $30 strike and collect the premium based on the $1.20 bid, which annualizes to an additional 9.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 12.2% annualized rate in the scenario where the stock is not called away. Any upside above $30 would be lost if the stock rises there and is called away, but MATX shares would have to climb 5.7% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 9.9% return from this trading level, in addition to any dividends collected before the stock was called. ift.tt/1mhtPUx ..#owadgifidel
Posted on: Wed, 16 Jul 2014 16:29:24 +0000
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