How To YieldBoost MLM From 0.8% To 14.5% Using Options
May 23, 2016 at 11:42 AM EDT
Shareholders of Martin Marietta Materials, Inc. (MLM) looking to boost their income beyond the stock's 0.8% annualized dividend yield can sell the October covered call at the $195 strike and collect the premium based on the $10.70 bid, which annualizes to an additional 13.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 14.5% annualized rate in the scenario where the stock is not called away..