YieldBoost KMG Chemicals To 10.5% Using Options
November 15, 2016 at 11:39 AM EST
Shareholders of KMG Chemicals, Inc. (KMG) looking to boost their income beyond the stock's 0.4% annualized dividend yield can sell the June 2017 covered call at the $35 strike and collect the premium based on the $1.85 bid, which annualizes to an additional 10.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.5% annualized rate in the scenario where the stock is not called away..