How To YieldBoost Dawson Geophysical From 2.6% To 29.2% Using Options
December 31, 2014 at 11:42 AM EST
Shareholders of Dawson Geophysical Co. (DWSN) looking to boost their income beyond the stock's 2.6% annualized dividend yield can sell the January 2015 covered call at the $15 strike and collect the premium based on the 15 cents bid, which annualizes to an additional 26.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 29.2% annualized rate in the scenario where the stock is not called away..