YieldBoost Comfort Systems USA To 13.1% Using Options
March 02, 2015 at 11:31 AM EST
Shareholders of Comfort Systems USA, Inc. (FIX) looking to boost their income beyond the stock's 1.3% annualized dividend yield can sell the July covered call at the $20 strike and collect the premium based on the 85 cents bid, which annualizes to an additional 11.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 13.1% annualized rate in the scenario where the stock is not called away..