How To YieldBoost TGI From 0.3% To 7.1% Using Options
March 12, 2014 at 11:55 AM EDT
Shareholders of Triumph Group Inc. (TGI) looking to boost their income beyond the stock's 0.3% annualized dividend yield can sell the September covered call at the $70 strike and collect the premium based on the $2.30 bid, which annualizes to an additional 6.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.1% annualized rate in the scenario where the stock is not called away..