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How To YieldBoost ECL From 1.1% To 4.5% Using Options

By Bnk Invest

How To YieldBoost ECL From 1.1% To 4.5% Using Options

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 Ecolab Inc, looking at the dividend history chart for ECL 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 1.1% annualized dividend yield.

Below is a chart showing ECL's trailing twelve month trading history, with the $280 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 December 2025 covered call at the $280 strike gives good reward for the risk of having given away the upside beyond $280. (Do most options expire worthless? This and six other common options myths debunked). We calculate the trailing twelve month volatility for Ecolab Inc (considering the last 251 trading day closing values as well as today's price of $243.20) to be 19%. For other call options contract ideas at the various different available expirations, visit the ECL Stock Options page of StockOptionsChannel.com.

In mid-afternoon trading on Wednesday, the put volume among S&P 500 components was 917,141 contracts, with call volume at 2.30M, for a put:call ratio of 0.40 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.

Top YieldBoost Calls of the S&P 500 "

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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