Strategy To YieldBoost Inter Parfums From 1.8% To 9.9% Using Options
February 11, 2015 at 11:36 AM EST
Shareholders of Inter Parfums, Inc. (IPAR) looking to boost their income beyond the stock's 1.8% annualized dividend yield can sell the August covered call at the $30 strike and collect the premium based on the $1.15 bid, which annualizes to an additional 8.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9.9% annualized rate in the scenario where the stock is not called away..