For example, here are two chocies for CTL along with their respective downside protections provided by the call option, as well as
the annualized call premium yields:
We've added two columns below: the first assumes you write an option that is at least 5 % out - of - the - money each month, and the second is the sum of the annualized dividend and call premium (
the annualized call premiums in these examples are 12x the September cycle time premium for options that are between 5 % and 9 % out - of - the - money):
Not exact matches
If you wanted a little more
call premium you could sell the 28 strike instead of the 27 strike, and get 7.3 %
annualized yield from the
call premium, plus the 8.4 % dividend for a total yield over 15 %.