YieldBoost Park-Ohio Holdings To 6.7% Using Options
December 08, 2014 at 11:33 AM EST
Shareholders of Park-Ohio Holdings Corp. (PKOH) looking to boost their income beyond the stock's 0.8% annualized dividend yield can sell the June 2015 covered call at the $70 strike and collect the premium based on the $1.90 bid, which annualizes to an additional 5.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.7% annualized rate in the scenario where the stock is not called away..