YieldBoost Exxon Mobil Corp. From 3.6% To 6.2% Using Options
September 23, 2016 at 11:44 AM EDT
Shareholders of Exxon Mobil Corp. (XOM) looking to boost their income beyond the stock's 3.6% annualized dividend yield can sell the January 2018 covered call at the $92.50 strike and collect the premium based on the $2.85 bid, which annualizes to an additional 2.6% 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..