#FLAKZ #Markets YieldBoost Monotype Imaging Holdings From 1.1% To - TopicsExpress



          

#FLAKZ #Markets YieldBoost Monotype Imaging Holdings From 1.1% To 9.8% Using Options ift.tt/eA8V8J Shareholders of Monotype Imaging Holdings (NASD: TYPE) looking to boost their income beyond the stocks 1.1% annualized dividend yield can sell the February 2015 covered call at the $30 strike and collect the premium based on the $1.45 bid, which annualizes to an additional 8.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9.8% annualized rate in the scenario where the stock is not called away. Any upside above $30 would be lost if the stock rises there and is called away, but TYPE shares would have to advance 7% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 12.1% return from this trading level, in addition to any dividends collected before the stock was called. ift.tt/1mhtQYn ..#owadgifidel
Posted on: Wed, 16 Jul 2014 16:29:29 +0000

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