YieldBoost Nabors Industries To 9.4% Using Options
September 23, 2016 at 11:46 AM EDT
Shareholders of Nabors Industries Ltd. (NBR) looking to boost their income beyond the stock's 2.3% annualized dividend yield can sell the January 2018 covered call at the $15 strike and collect the premium based on the 99 cents bid, which annualizes to an additional 7.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9.4% annualized rate in the scenario where the stock is not called away..