How To YieldBoost Quad/Graphics From 5.2% To 13.9% Using Options
April 10, 2015 at 11:34 AM EDT
Shareholders of Quad/Graphics, Inc. (QUAD) looking to boost their income beyond the stock's 5.2% annualized dividend yield can sell the October covered call at the $25 strike and collect the premium based on the $1.05 bid, which annualizes to an additional 8.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 13.9% annualized rate in the scenario where the stock is not called away..