Strategy To YieldBoost Callaway Golf To 9.7% Using Options
April 21, 2015 at 11:33 AM EDT
Shareholders of Callaway Golf Co. (ELY) looking to boost their income beyond the stock's 0.4% annualized dividend yield can sell the November covered call at the $11 strike and collect the premium based on the 55 cents bid, which annualizes to an additional 9.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9.7% annualized rate in the scenario where the stock is not called away..