Investors in Colony Financial Inc. (CLNY) saw new options become available this week, for the May 17th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the CLNY options chain for the new May 17th contracts and identified the following call contract of particular interest.The call contract at the $22.50 strike price has a current bid of 10 cents. If an investor was to purchase shares of CLNY stock at the current price level of $21.96/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $22.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 2.91% if the stock gets called away at the May 17th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if CLNY shares really soar, which is why looking at the trailing twelve month trading history for Colony Financial Inc., as well as studying the business fundamentals becomes important. Below is a chart showing CLNY's trailing twelve month trading history, with the $22.50 strike highlighted in red:
First Week of CLNY May 17th Options Trading
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