YieldBoost Cash America International From 0.7% To 10.4% Using Options
August 05, 2015 at 11:52 AM EDT
Shareholders of Cash America International, Inc. (CSH) looking to boost their income beyond the stock's 0.7% annualized dividend yield can sell the March 2016 covered call at the $30 strike and collect the premium based on the $1.65 bid, which annualizes to an additional 9.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.4% annualized rate in the scenario where the stock is not called away..