Investors in Capstead Mortgage Corp. (CMO) saw new options become available today, for the September 21st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the CMO options chain for the new September 21st contracts and identified the following call contract of particular interest.The call contract at the $12.50 strike price has a current bid of 10 cents. If an investor was to purchase shares of CMO stock at the current price level of $11.71/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $12.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 7.60% if the stock gets called away at the September 21st expiration (before broker commissions). If course, a lot of upside could potentially be left on the table if CMO shares really soar, which is why looking at the trailing twelve month trading history for Capstead Mortgage Corp., as well as studying the business fundamentals becomes important. Below is a chart showing CMO's trailing twelve month trading history, with the $12.50 strike highlighted in red:
September 21st Options Now Available For Capstead Mortgage (CMO)
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