YieldBoost Denbury Resources From 3.9% To 13.5% Using Options
June 23, 2015 at 11:34 AM EDT
Shareholders of Denbury Resources, Inc. (DNR) looking to boost their income beyond the stock's 3.9% annualized dividend yield can sell the January 2016 covered call at the $8 strike and collect the premium based on the 35 cents bid, which annualizes to an additional 9.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 13.5% annualized rate in the scenario where the stock is not called away..