How To YieldBoost SCVL From 0.9% To 9.8% Using Options
December 09, 2016 at 11:36 AM EST
Shareholders of Shoe Carnival, Inc. (SCVL) looking to boost their income beyond the stock's 0.9% annualized dividend yield can sell the June 2017 covered call at the $35 strike and collect the premium based on the $1.40 bid, which annualizes to an additional 8.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9.8% annualized rate in the scenario where the stock is not called away..