#FLAKZ #Markets YieldBoost D.R. Horton To 5% Using Options - TopicsExpress



          

#FLAKZ #Markets YieldBoost D.R. Horton To 5% Using Options ift.tt/eA8V8J Shareholders of D.R. Horton Inc. (NYSE: DHI) looking to boost their income beyond the stocks 0.6% annualized dividend yield can sell the January 2016 covered call at the $30 strike and collect the premium based on the $1.60 bid, which annualizes to an additional 4.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 5% 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 DHI shares would have to climb 24.5% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 31.1% return from this trading level, in addition to any dividends collected before the stock was called. ift.tt/U4o0Tk ..#owadgifidel
Posted on: Mon, 14 Jul 2014 15:41:45 +0000

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