YieldBoost KMG Chemicals From 0.3% To 12.5% Using Options

Shareholders of KMG Chemicals, Inc. (KMG) looking to boost their income beyond the stock's 0.3% annualized dividend yield can sell the December covered call at the $50 strike and collect the premium based on the $2.80 bid, which annualizes to an additional 12.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 12.5% annualized rate in the scenario where the stock is not called away..