YieldBoost HAR From 1.2% To 10.4% Using Options
September 22, 2014 at 12:15 PM EDT
Shareholders of Harman International Industries, Inc. (HAR) looking to boost their income beyond the stock's 1.2% annualized dividend yield can sell the April 2015 covered call at the $115 strike and collect the premium based on the $5.50 bid, which annualizes to an additional 9.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.4% annualized rate in the scenario where the stock is not called away..