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MKS Instruments Offers Strong Covered Call Opportunity

MKS Instruments Inc provides shareholders with a potential 22.3% return through covered calls. The $140 strike at $6.10 could enhance overall income significantly, despite the risks associated with not securing dividends.

Date: 
AI Rating:   6

Covered Call Strategy and Yield Enhancement

MKS Instruments Inc (Symbol: MKSI) currently presents an attractive option for shareholders seeking to enhance income through covered calls. Selling the July covered call at the $140 strike price can yield a premium of $6.10, equating to an additional potential annualized return of 10.2%. When combined with the existing dividend yield of 0.7%, this could result in a total annualized return of approximately 10.9%, should the stock not be called away.

However, shareholders must be cautious of the trade-offs involved. If the stock reaches or exceeds the $140 strike price, any