How To YieldBoost Rush Enterprises From 1.4% To 16.7% Using Options
December 12, 2018 at 12:36 PM EST
Shareholders of Rush Enterprises Inc. (RUSHA) looking to boost their income beyond the stock's 1.4% annualized dividend yield can sell the April 2019 covered call at the $35 strike and collect the premium based on the $1.75 bid, which annualizes to an additional 15.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 16.7% annualized rate in the scenario where the stock is not called away..