How To YieldBoost Genie Energy To 20.4% Using Options
March 28, 2017 at 11:51 AM EDT
Shareholders of Genie Energy Ltd. (GNE) looking to boost their income beyond the stock's 4.9% annualized dividend yield can sell the September covered call at the $7.50 strike and collect the premium based on the 45 cents bid, which annualizes to an additional 15.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 20.4% annualized rate in the scenario where the stock is not called away..