Strategy To YieldBoost Universal Technical Institute To 11.3% Using Options
November 18, 2014 at 11:36 AM EST
Shareholders of Universal Technical Institute, Inc. (UTI) looking to boost their income beyond the stock's 3.6% annualized dividend yield can sell the April 2015 covered call at the $12.50 strike and collect the premium based on the 35 cents bid, which annualizes to an additional 7.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 11.3% annualized rate in the scenario where the stock is not called away..