Strategy To YieldBoost SYX To 17.2% Using Options
December 04, 2017 at 11:31 AM EST
Shareholders of Systemax, Inc. (SYX) looking to boost their income beyond the stock's 1.3% annualized dividend yield can sell the March 2018 covered call at the $35 strike and collect the premium based on the $1.35 bid, which annualizes to an additional 15.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 17.2% annualized rate in the scenario where the stock is not called away..