YieldBoost MSCI From 1.2% To 32.1% Using Options

Shareholders of MSCI Inc (MSCI) looking to boost their income beyond the stock's 1.2% annualized dividend yield can sell the March covered call at the $105 strike and collect the premium based on the $2.50 bid, which annualizes to an additional 30.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 32.1% annualized rate in the scenario where the stock is not called away. Any upside above $105 would be lost if the stock rises there and is called away, but MSCI shares would have to climb 13.5% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 16.2% return from this trading level, in addition to any dividends collected before the stock was called.
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.