YieldBoost Kohl's Corp. To 24.2% Using Options
July 18, 2016 at 11:43 AM EDT
Shareholders of Kohl's Corp. (KSS) looking to boost their income beyond the stock's 5.1% annualized dividend yield can sell the October covered call at the $40 strike and collect the premium based on the $1.95 bid, which annualizes to an additional 19.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 24.2% annualized rate in the scenario where the stock is not called away..