Strategy To YieldBoost Noble Energy From 1.2% To 19.1% Using Options
September 19, 2016 at 11:41 AM EDT
Shareholders of Noble Energy, Inc. (NBL) looking to boost their income beyond the stock's 1.2% annualized dividend yield can sell the January 2017 covered call at the $35 strike and collect the premium based on the $2.05 bid, which annualizes to an additional 17.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 19.1% annualized rate in the scenario where the stock is not called away..