How To YieldBoost Skyworks Solutions From 1.4% To 10.2% Using Options
November 22, 2016 at 11:41 AM EST
Shareholders of Skyworks Solutions, Inc. (SWKS) looking to boost their income beyond the stock's 1.4% annualized dividend yield can sell the May 2017 covered call at the $90 strike and collect the premium based on the $3.40 bid, which annualizes to an additional 8.8% 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..