YieldBoost SIAL To 0.8% Using Options
October 21, 2014 at 11:39 AM EDT
Shareholders of Sigma-Aldrich Corp. (SIAL) looking to boost their income beyond the stock's 0.7% annualized dividend yield can sell the June 2015 covered call at the $140 strike and collect the premium based on the 5 cents bid, which annualizes to an additional 0.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 0.8% annualized rate in the scenario where the stock is not called away..