Strategy To YieldBoost NUE From 3.1% To 6.2% Using Options
June 24, 2015 at 11:42 AM EDT
Shareholders of Nucor Corp. (NUE) looking to boost their income beyond the stock's 3.1% annualized dividend yield can sell the January 2017 covered call at the $55 strike and collect the premium based on the $2.28 bid, which annualizes to an additional 3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.2% annualized rate in the scenario where the stock is not called away..