YieldBoost MRO From 1.3% To 7.2% Using Options
March 21, 2017 at 11:54 AM EDT
Shareholders of Marathon Oil Corp. (MRO) looking to boost their income beyond the stock's 1.3% annualized dividend yield can sell the January 2018 covered call at the $20 strike and collect the premium based on the 74 cents bid, which annualizes to an additional 5.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.2% annualized rate in the scenario where the stock is not called away..