YieldBoost HRS From 2.3% To 6.3% Using Options
April 24, 2015 at 11:43 AM EDT
Shareholders of Harris Corp. (HRS) looking to boost their income beyond the stock's 2.3% annualized dividend yield can sell the November covered call at the $90 strike and collect the premium based on the $1.85 bid, which annualizes to an additional 4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.3% annualized rate in the scenario where the stock is not called away..