How To YieldBoost CRY To 17.1% Using Options
November 19, 2014 at 11:48 AM EST
Shareholders of CryoLife, Inc. (CRY) looking to boost their income beyond the stock's 1.3% annualized dividend yield can sell the April 2015 covered call at the $10 strike and collect the premium based on the 60 cents bid, which annualizes to an additional 15.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 17.1% annualized rate in the scenario where the stock is not called away..