How To YieldBoost Campus Crest Communities To 16.3% Using Options
August 12, 2014 at 11:30 AM EDT
Shareholders of Campus Crest Communities, Inc. (CCG) looking to boost their income beyond the stock's 7.9% annualized dividend yield can sell the December covered call at the $10 strike and collect the premium based on the 25 cents bid, which annualizes to an additional 8.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 16.3% annualized rate in the scenario where the stock is not called away..