CNH Industrial NV (Symbol: CNH) shareholders can potentially earn an additional 7.6% rate of return by selling a covered call at the $12.50 strike. This would bring the total annualized rate to 10%. The stock would have to climb 17% for it to be called away, resulting in a 26.4% return from the current trading level. Dividend history can help determine if the 2.4% annualized dividend yield is sustainable. Options trading volume shows a preference for calls over puts, with a put:call ratio of 0.50 among S&P 500 components.
Read more at Nasdaq: YieldBoost CNH Industrial To 10% Using Options
