MNV
Market News Video
MNV MNV 10 Stocks Crossing Below Book Value
MNV
MNV
MNV
MNV
MNV
MNV
MNV
Free Dividend Report - Top Ranked Stocks

Featured MNV Articles:

GWW Crosses Above Average Analyst Target
Friday, December 18, 8:58 AM ET, by Market News Video Staff

In recent trading, shares of W.W. Grainger Inc.. ...

W.W. Grainger Becomes Oversold
Wednesday, January 27, 11:32 AM ET, by Market News Video Staff

The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, ...

5 Dividend Growth Stocks With Upside To Analyst Targets
Friday, January 29, 7:44 AM ET, by Market News Video Staff

To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently ...

Ex-Dividend Reminder: Brinks, Matthews International and W.W. Grainger
Wednesday, February 3, 10:52 AM ET, by Market News Video Staff

On 2/5/21, Brinks Co (BCO), Matthews International Corp (MATW), and W.W. Grainger Inc.. ...

5 Dividend Growth Stocks With Upside To Analyst Targets
Monday, March 1, 10:34 AM ET, by Market News Video Staff

To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently ...

YieldBoost W.W. Grainger From 1.5% To 11.2% Using Options

By Market News Video Staff, Tuesday, September 7, 11:36 AM ET
Play Video: The Importance of ETFs


If the video does not load after a few moments, Upgrade to the Latest Flash Player.
Email EnvelopeFree Email Alerts By Stock:
Get Dividend Alerts
Get SEC Filing Alerts

Shareholders of W.W. Grainger Inc. (NYSE:GWW) looking to boost their income beyond the stock's 1.5% annualized dividend yield can sell the April 2022 covered call at the $440 strike and collect the premium based on the $24.70 bid, which annualizes to an additional 9.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 11.2% annualized rate in the scenario where the stock is not called away. Any upside above $440 would be lost if the stock rises there and is called away, but GWW shares would have to climb 3.5% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 9.3% return from this trading level, in addition to any dividends collected before the stock was called.

In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of W.W. Grainger Inc., looking at the dividend history chart for GWW below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 1.5% annualized dividend yield.

Below is a chart showing GWW's trailing twelve month trading history, with the $440 strike highlighted in red:

The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the April 2022 covered call at the $440 strike gives good reward for the risk of having given away the upside beyond $440. (Do most options expire worthless? This and six other common options myths debunked). We calculate the trailing twelve month volatility for W.W. Grainger Inc. (considering the last 251 trading day closing values as well as today's price of $423.38) to be 23%. For other call options contract ideas at the various different available expirations, visit the GWW Stock Options page of StockOptionsChannel.com.

In mid-afternoon trading on Tuesday, the put volume among S&P 500 components was 1.19M contracts, with call volume at 2.61M, for a put:call ratio of 0.45 so far for the day. Compared to the long-term median put:call ratio of .65, that represents very high call volume relative to puts; in other words, buyers are preferring calls in options trading so far today. Find out which 15 call and put options traders are talking about today.


This Article's Word Cloud:   April   Arial   Grainger   Options   Stock   YieldBoost   above   afterLeftLabels   annualized   away   axisColor   background   beforeLeftLabels   beyond   bkgImage   bottomBuffer   bottomLabels   bottomTableHeight   call   called   chart   chartBackgroundColor   clientId   covered   current   dividend   document   escape   fillBelowLine   fillColor   fontFace   fontSize   from   gridBackgroundColor   gridColor   gridLocation   height   history   labelColor   labelSide   options   other   stock   strike   that   today   trading   volume   whether   with
MNV
MNV
About Us - Advertise - Contact Us - Embedding Videos - Licensing Videos - Partners - mRSS / RSS Feed - Terms of Use - Privacy Policy
MNV
Home  |  Analyst News  Dividend Report  ETFs  Insider Report  Large Caps  Market Movers  Week Ahead Report  Weekly Market Wrap
MNV
MNV MNV Stock Message Boards Stock Market Definitions
MNV

YieldBoost W.W. Grainger From 1.5% To 11.2% Using Options | Market News Video | Copyright © 2008 - 2021, All Rights Reserved

Any ideas and opinions presented in all Market News Video clips are for informational and educational purposes only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners. In no way should any content contained herein be interpreted to represent trading or investment advice. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.