YieldBoost CTS To 7.7% Using Options
March 13, 2014 at 11:43 AM EDT
Shareholders of CTS Corp. (CTS) looking to boost their income beyond the stock's 0.8% annualized dividend yield can sell the October covered call at the $22.50 strike and collect the premium based on the 85 cents bid, which annualizes to an additional 6.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.7% annualized rate in the scenario where the stock is not called away..