YieldBoost AME To 10.2% Using Options
May 31, 2016 at 11:46 AM EDT
Shareholders of AMETEK, Inc. (AME) looking to boost their income beyond the stock's 0.8% annualized dividend yield can sell the September covered call at the $50 strike and collect the premium based on the $1.35 bid, which annualizes to an additional 9.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.2% annualized rate in the scenario where the stock is not called away..