YieldBoost MSI To 7.6% Using Options
June 21, 2017 at 11:34 AM EDT
Shareholders of Motorola Solutions Inc. (MSI) looking to boost their income beyond the stock's 2.2% annualized dividend yield can sell the January 2018 covered call at the $92.50 strike and collect the premium based on the $2.71 bid, which annualizes to an additional 5.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.6% annualized rate in the scenario where the stock is not called away..