Strategy To YieldBoost PLT To 14.4% Using Options
June 23, 2017 at 11:37 AM EDT
Shareholders of Plantronics, Inc. (PLT) looking to boost their income beyond the stock's 1.1% annualized dividend yield can sell the November covered call at the $55 strike and collect the premium based on the $2.85 bid, which annualizes to an additional 13.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 14.4% annualized rate in the scenario where the stock is not called away..