YieldBoost Exxon Mobil Corp. To 5.2% Using Options
June 24, 2015 at 11:46 AM EDT
Shareholders of Exxon Mobil Corp. (XOM) looking to boost their income beyond the stock's 3.4% annualized dividend yield can sell the January 2017 covered call at the $95 strike and collect the premium based on the $2.44 bid, which annualizes to an additional 1.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 5.2% annualized rate in the scenario where the stock is not called away..