YieldBoost Limoneira From 0.8% To 9.1% Using Options
May 21, 2015 at 11:34 AM EDT
Shareholders of Limoneira Co. (LMNR) looking to boost their income beyond the stock's 0.8% annualized dividend yield can sell the December covered call at the $25 strike and collect the premium based on the $1.10 bid, which annualizes to an additional 8.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9.1% annualized rate in the scenario where the stock is not called away..