Strategy To YieldBoost LFUS From 1% To 7.3% Using Options
May 21, 2014 at 11:41 AM EDT
Shareholders of Littelfuse, Inc. (LFUS) looking to boost their income beyond the stock's 1% annualized dividend yield can sell the December covered call at the $95 strike and collect the premium based on the $3.20 bid, which annualizes to an additional 6.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.3% annualized rate in the scenario where the stock is not called away..