YieldBoost Pall Corp. From 1% To 4.1% Using Options
June 25, 2015 at 11:35 AM EDT
Shareholders of Pall Corp. (PLL) looking to boost their income beyond the stock's 1% annualized dividend yield can sell the December covered call at the $125 strike and collect the premium based on the $1.90 bid, which annualizes to an additional 3.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 4.1% annualized rate in the scenario where the stock is not called away..