How To YieldBoost Andersons To 8.8% Using Options
March 20, 2015 at 11:36 AM EDT
Shareholders of Andersons, Inc. (ANDE) looking to boost their income beyond the stock's 1.4% annualized dividend yield can sell the September covered call at the $45 strike and collect the premium based on the $1.55 bid, which annualizes to an additional 7.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8.8% annualized rate in the scenario where the stock is not called away..