Strategy To YieldBoost Terex Corp. To 4.8% Using Options
July 21, 2015 at 11:39 AM EDT
Shareholders of Terex Corp. (TEX) looking to boost their income beyond the stock's 1.1% annualized dividend yield can sell the January 2017 covered call at the $30 strike and collect the premium based on the $1.30 bid, which annualizes to an additional 3.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 4.8% annualized rate in the scenario where the stock is not called away..