Turning to the other side of the option chain, we highlight one call contract of particular interest for the March expiration, for shareholders of Boeing Co. (BA) looking to boost their income beyond the stock's 2.3% annualized dividend yield. Selling the covered call at the $130 strike and collecting the premium based on the $2.50 bid, annualizes to an additional 17.9% rate of return against the current stock price (this is what we at Stock Options Channel refer to as the YieldBoost), for a total of 20.2% annualized rate in the scenario where the stock is not called away. Any upside above $130 would be lost if the stock rises there and is called away, but BA shares would have to climb 2.1% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 4.1% return from this trading level, in addition to any dividends collected before the stock was called.
One Put, One Call Option To Know About for Boeing
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.