Strategy To YieldBoost BOBE From 2.4% To 9.3% Using Options
March 21, 2014 at 11:40 AM EDT
Shareholders of Bob Evans Farms, Inc. (BOBE) looking to boost their income beyond the stock's 2.4% annualized dividend yield can sell the September covered call at the $55 strike and collect the premium based on the $1.75 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 9.3% annualized rate in the scenario where the stock is not called away..