YieldBoost Sun Hydraulics Corp. From 1% To 10.6% Using Options
October 20, 2014 at 11:59 AM EDT
Shareholders of Sun Hydraulics Corp. (SNHY) looking to boost their income beyond the stock's 1% annualized dividend yield can sell the March 2015 covered call at the $39 strike and collect the premium based on the $1.40 bid, which annualizes to an additional 9.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.6% annualized rate in the scenario where the stock is not called away..