|Day Low/High||99.47 / 101.17|
|52 Wk Low/High||68.00 / 105.69|
Shareholders of Cabot Microelectronics Corp looking to boost their income beyond the stock's 0.8% annualized dividend yield can sell the July 2018 covered call at the $110 strike and collect the premium based on the $3.80 bid, which annualizes to an additional 6.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.9% annualized rate in the scenario where the stock is not called away. Any upside above $110 would be lost if the stock rises there and is called away, but CCMP shares would have to advance 12.4% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 16.3% return from this trading level, in addition to any dividends collected before the stock was called.
Investors in Cabot Microelectronics Corp saw new options become available this week, for the May 19th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the CCMP options chain for the new May 19th contracts and identified one put and one call contract of particular interest.
Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Cabot Microelectronics Corp , where a total volume of 5,877 contracts has been traded thus far today, a contract volume which is representative of approximately 587,700 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 346.6% of CCMP's average daily trading volume over the past month, of 169,550 shares.
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