YieldBoost Noble Energy From 1.2% To 11.9% Using Options
March 20, 2017 at 11:38 AM EDT
Shareholders of Noble Energy, Inc. (NBL) looking to boost their income beyond the stock's 1.2% annualized dividend yield can sell the January 2018 covered call at the $35 strike and collect the premium based on the $3.00 bid, which annualizes to an additional 10.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 11.9% annualized rate in the scenario where the stock is not called away..