YieldBoost Ecolab From 1% To 5.6% Using Options
July 24, 2014 at 12:02 PM EDT
Shareholders of Ecolab, Inc. (ECL) looking to boost their income beyond the stock's 1% annualized dividend yield can sell the January 2015 covered call at the $115 strike and collect the premium based on the $2.45 bid, which annualizes to an additional 4.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 5.6% annualized rate in the scenario where the stock is not called away..