YieldBoost AES Corp. To 10% Using Options
June 23, 2016 at 11:55 AM EDT
Shareholders of AES Corp. (AES) looking to boost their income beyond the stock's 3.6% annualized dividend yield can sell the February 2017 covered call at the $13 strike and collect the premium based on the 50 cents bid, which annualizes to an additional 6.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10% annualized rate in the scenario where the stock is not called away..