YieldBoost IMKTA From 1.5% To 11.9% Using Options
February 27, 2015 at 11:29 AM EST
Shareholders of Ingles Markets, Inc. (IMKTA) looking to boost their income beyond the stock's 1.5% annualized dividend yield can sell the August covered call at the $50 strike and collect the premium based on the $2.20 bid, which annualizes to an additional 10.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 11.9% annualized rate in the scenario where the stock is not called away..