How To YieldBoost MOV To 12.4% Using Options
December 18, 2017 at 11:31 AM EST
Shareholders of Movado Group, Inc. (MOV) looking to boost their income beyond the stock's 1.6% annualized dividend yield can sell the June 2018 covered call at the $36 strike and collect the premium based on the $1.65 bid, which annualizes to an additional 10.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 12.4% annualized rate in the scenario where the stock is not called away..