Strategy To YieldBoost PKOH From 0.9% To 19.8% Using Options
August 04, 2014 at 11:34 AM EDT
Shareholders of Park-Ohio Holdings Corp. (PKOH) looking to boost their income beyond the stock's 0.9% annualized dividend yield can sell the December covered call at the $60 strike and collect the premium based on the $4.20 bid, which annualizes to an additional 19% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 19.8% annualized rate in the scenario where the stock is not called away..