How To YieldBoost MTX From 0.3% To 15.6% Using Options
December 08, 2014 at 11:35 AM EST
Shareholders of Minerals Technologies, Inc. (MTX) looking to boost their income beyond the stock's 0.3% annualized dividend yield can sell the February 2015 covered call at the $75 strike and collect the premium based on the $2.25 bid, which annualizes to an additional 15.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.6% annualized rate in the scenario where the stock is not called away..