How To YieldBoost Comtech Telecommunications Corp. To 13.4% Using Options
June 24, 2015 at 11:40 AM EDT
Shareholders of Comtech Telecommunications Corp. (CMTL) looking to boost their income beyond the stock's 4% annualized dividend yield can sell the January 2016 covered call at the $32.50 strike and collect the premium based on the $1.60 bid, which annualizes to an additional 9.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 13.4% annualized rate in the scenario where the stock is not called away..