Article  Archive Learning The Psychology Of Trader Search by tag : Have You Insured Your Stocks, High Dividend Stocks - Bottom Fishing, Technical Analysis., Stock Market Investment, High Dividend Stocks, A Bottom Fishing Expedition |
| The details for this 8-month trade are: |
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Breakeven: $23.24/share Upside Trigger Price: $32.20 Static Call Yield: 8.21% Call Premium: $220.00 Dividend Yield: 5.72% Dividends Paid: $153.00 Total Static Yield (Call + Dividends): 13.93% or 20.95% annualized Potential Assigned Yield: 13.93% $373.00 on sale at $30.00 Total Potential Assigned Yield (Total Static + Cap. Gain): 27.87% The 8-month 27.87% yield equals an annualized yield of 41.8% So, we started out with a high dividend stock yielding 7.62 %, then we locked in an additional 8.21%, (12.3% annualized), plus we set ourselves up for a total potential annualized yield of 41.8%.In addition to more than doubling your yield, this strategy also lowers your breakeven considerably, providing you with 13.93% downside protection. One other benefit to this strategy is that you know exactly what your upside potential profit is.It's enough to make you yell "Timber!"
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