Strategy To YieldBoost PKOH To 9.3% Using Options
May 08, 2017 at 11:49 AM EDT
Shareholders of Park-Ohio Holdings Corp. (PKOH) looking to boost their income beyond the stock's 1.3% annualized dividend yield can sell the December covered call at the $45 strike and collect the premium based on the $1.85 bid, which annualizes to an additional 8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9.3% annualized rate in the scenario where the stock is not called away..