How To YieldBoost j2 Global To 18.2% Using Options
July 11, 2014 at 12:17 PM EDT
Shareholders of j2 Global, Inc. (JCOM) looking to boost their income beyond the stock's 2.2% annualized dividend yield can sell the December covered call at the $50 strike and collect the premium based on the $3.50 bid, which annualizes to an additional 16% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 18.2% annualized rate in the scenario where the stock is not called away..