How To YieldBoost MCO To 5.3% Using Options
December 18, 2024 at 12:07 PM EST
Shareholders of Moody's Corp. (MCO) looking to boost their income beyond the stock's 0.7% annualized dividend yield can sell the December 2025 covered call at the $560 strike and collect the premium based on the $22.30 bid, which annualizes to an additional 4.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 5.3% annualized rate in the scenario where the stock is not called away..
