How To YieldBoost Steelcase From 2.6% To 15.2% Using Options
April 14, 2014 at 12:13 PM EDT
Shareholders of Steelcase, Inc. (SCS) looking to boost their income beyond the stock's 2.6% annualized dividend yield can sell the July covered call at the $17.50 strike and collect the premium based on the 55 cents bid, which annualizes to an additional 12.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.2% annualized rate in the scenario where the stock is not called away..