|Day Low/High||2.22 / 2.33|
|52 Wk Low/High||1.47 / 17.40|
Investors in Globe Specialty Metals Inc saw new options begin trading this week, for the January 2014 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the GSM options chain for the new January 2014 contracts and identified one put and one call contract of particular interest.
Shareholders of Globe Specialty Metals Inc looking to boost their income beyond the stock's 1.5% annualized dividend yield can sell the June 2014 covered call at the $20 strike and collect the premium based on the 85 cents bid, which annualizes to an additional 7.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8.8% annualized rate in the scenario where the stock is not called away. Any upside above $20 would be lost if the stock rises there and is called away, but GSM shares would have to advance 10.6% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 15.3% return from this trading level, in addition to any dividends collected before the stock was called.
Unless the market falls more and puts pressure on Congress, a budget deal won't get done, Cramer says.
Upgrades: BITA, CLDT, CPLA, EA, GPT, NMR, OMX, PZN, SHEN, UNT Downgrades: AXLL, CKEC, GSM, SCMP, WIT Initiations: None
Globe Specialty Metals (Nasdaq:GSM) has been upgraded by TheStreet Ratings from a hold to buy.
Analyst lowers rating on Globe Specialty Metals due to its stock price
Globe Specialty Metals' CEO Discusses Q4 Results - Earnings Call Transcript
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