YieldBoost Waddell & Reed Financial From 10.1% To 22.1% Using Options
January 19, 2017 at 13:22 PM EST
Shareholders of Waddell & Reed Financial, Inc. (WDR) looking to boost their income beyond the stock's 10.1% annualized dividend yield can sell the June covered call at the $20 strike and collect the premium based on the 90 cents bid, which annualizes to an additional 12.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 22.1% annualized rate in the scenario where the stock is not called away..