YieldBoost The Gap To 4.6% Using Options

Shareholders of The Gap, Inc. (GPS) looking to boost their income beyond the stock's 2.6% annualized dividend yield can sell the January 2017 covered call at the $45 strike and collect the premium based on the $1.09 bid, which annualizes to an additional 2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 4.6% annualized rate in the scenario where the stock is not called away..
Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.