Strategy To YieldBoost International Flavors & Fragrances To 9.7% Using Options
December 01, 2016 at 11:53 AM EST
Shareholders of International Flavors & Fragrances Inc. (IFF) looking to boost their income beyond the stock's 2.1% annualized dividend yield can sell the May 2017 covered call at the $125 strike and collect the premium based on the $4.20 bid, which annualizes to an additional 7.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9.7% annualized rate in the scenario where the stock is not called away..