How To YieldBoost IQNT From 3.4% To 15.9% Using Options
June 01, 2015 at 12:06 PM EDT
Shareholders of Inteliquent, Inc. (IQNT) looking to boost their income beyond the stock's 3.4% annualized dividend yield can sell the December covered call at the $20 strike and collect the premium based on the $1.20 bid, which annualizes to an additional 12.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.9% annualized rate in the scenario where the stock is not called away..