Strategy To YieldBoost Abaxis From 0.6% To 8.5% Using Options
March 30, 2015 at 11:30 AM EDT
Shareholders of Abaxis, Inc. (ABAX) looking to boost their income beyond the stock's 0.6% annualized dividend yield can sell the November covered call at the $70 strike and collect the premium based on the $3.30 bid, which annualizes to an additional 7.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8.5% annualized rate in the scenario where the stock is not called away..