YieldBoost CCNE From 2.4% To 10.9% Using Options
November 17, 2017 at 11:37 AM EST
Shareholders of CNB Financial Corp. (CCNE) looking to boost their income beyond the stock's 2.4% annualized dividend yield can sell the June 2018 covered call at the $30 strike and collect the premium based on the $1.35 bid, which annualizes to an additional 8.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.9% annualized rate in the scenario where the stock is not called away..