Strategy To YieldBoost Green Plains To 5.8% Using Options
June 24, 2015 at 11:37 AM EDT
Shareholders of Green Plains Inc. (GPRE) looking to boost their income beyond the stock's 1.1% annualized dividend yield can sell the January 2017 covered call at the $45 strike and collect the premium based on the $2.30 bid, which annualizes to an additional 4.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 5.8% annualized rate in the scenario where the stock is not called away..