May 1st Options Now Available For Sirius XM Holdings (SIRI) - Forbes

Investors in Sirius XM Holdings Inc (NASD: SIRI) saw new options become available today, for the May 1st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the SIRI options chain for the new May 1st contracts and identified the following call contract of particular interest. The call contract at the $4.00 strike price has a current bid of 6 cents. If an investor was to purchase shares of SIRI stock at the current price level of $3.90/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $4.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 4.10% if the stock gets called away at the May 1st expiration (before broker commissions).