How To YieldBoost CMRE To 26.2% Using Options
May 03, 2017 at 11:36 AM EDT
Shareholders of Costamare Inc. (CMRE) looking to boost their income beyond the stock's 5.2% annualized dividend yield can sell the September covered call at the $8 strike and collect the premium based on the 60 cents bid, which annualizes to an additional 21% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 26.2% annualized rate in the scenario where the stock is not called away..