YieldBoost AXP To 3.7% Using Options
March 13, 2014 at 11:42 AM EDT
Shareholders of American Express Co. (AXP) looking to boost their income beyond the stock's 1% annualized dividend yield can sell the January 2016 covered call at the $110 strike and collect the premium based on the $4.60 bid, which annualizes to an additional 2.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 3.7% annualized rate in the scenario where the stock is not called away..