YieldBoost Helmerich & Payne From 4.2% To 8.4% Using Options
June 07, 2018 at 11:49 AM EDT
Shareholders of Helmerich & Payne, Inc. (HP) looking to boost their income beyond the stock's 4.2% annualized dividend yield can sell the January 2020 covered call at the $80 strike and collect the premium based on the $4.40 bid, which annualizes to an additional 4.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8.4% annualized rate in the scenario where the stock is not called away..