#FLAKZ #Markets YieldBoost Lennar To 4.3% Using Options ift.tt/eA8V8J Shareholders of Lennar Corp. (NYSE: LEN) looking to boost their income beyond the stocks 0.4% annualized dividend yield can sell the January 2016 covered call at the $50 strike and collect the premium based on the $2.35 bid, which annualizes to an additional 3.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 4.3% annualized rate in the scenario where the stock is not called away. Any upside above $50 would be lost if the stock rises there and is called away, but LEN shares would have to climb 24.3% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 30.2% return from this trading level, in addition to any dividends collected before the stock was called. ift.tt/U4o0Ts ..#owadgifidel
Posted on: Mon, 14 Jul 2014 15:41:48 +0000
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