YieldBoost Norfolk Southern To 4.1% Using Options
July 23, 2014 at 12:50 PM EDT
Shareholders of Norfolk Southern Corp. (NSC) looking to boost their income beyond the stock's 2% annualized dividend yield can sell the January 2016 covered call at the $125 strike and collect the premium based on the $3.30 bid, which annualizes to an additional 2.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 4.1% annualized rate in the scenario where the stock is not called away..